The US dollar has initially rally during the trading session on Monday but gave back the gains early in the day. That being said, the market certainly looks as if it is trying to recover the massive amount of bullish pressure it had previously, and as long as we stay above the ¥108.50 level, we should continue to go powering towards the ¥110 level. The ¥110 level of course is a large, round, psychologically significant figure that a lot of people will pay close attention to and breaking above that will probably bring more money into the fold. At that point, I would be looking at this market through the prism of expecting a move towards the ¥111 level which was the most recent high.
USD/JPY Video 04.05.21
Looking at this chart, it does look like the market had gotten far too ahead of itself, so the question now is whether or not it can continue to see that momentum build? I think that is a bit of an open question at this point, but clearly it is worth paying close attention to as the US dollar is moving quite drastically against the yen itself, and of course the yen has been getting pounded against almost everything. If that continues, then by extension this market should continue to go higher as well. With all of this, I think the only thing you can probably count on is going to be a lot of noisy and choppy behavior, but that is not necessarily uncommon for this pair.
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