US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied yet again during the trading session on Monday to kick off the week and reach the ¥125 level. At this point, the market is still far overstretched, but at this point, it is likely that the volatility is only going to increase, due to the fact that sooner or later there is nobody left to buy this market. This is a situation that has gotten so far out of hand that you cannot be a buyer, because sooner or later we are going to see a retracement.
The market continues to see every 250 pips as a potential support level on a pullback, but it is worth noting that we have reached the extreme top of the range going back several years. The ¥125 level has been like a massive barrier that has been a major problem. Because of this, I think we are getting closer to a pullback than originally, but at this point, we need some type of signal to consider fading this move. As far as buying, there is almost no way to do so after a move like this, because quite frankly, chasing the trade is going to be very difficult. The market continues to go straight up in the air, but these types of moves almost always end in tears.
Looking at this chart, every 250 pips I will be paying attention to whether or not there is support on a pullback. As far shorting is concerned, it is possible that we need some type of fundamental reason to kick this market off to the downside. That being said, volatility continues to be a major
USD/JPY Technical Analysis Video 29.03.22
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