If this market does not pull back soon, the fall will be catastrophic. These moves never end well, and therefore I am not willing to buy it all the way up here. The pair certainly is moving on both technical and fundamental reasoning, but at this point, it is difficult to imagine that there are that many people left to buy it. Eventually, this is a market that will need to pull back in order to build up momentum. That being said, we have not shown any real desire to do so quite yet.
USD/JPY Technical Analysis Video 25.03.22
You are either already in this position to the upside, and doing quite well, or you are waiting for an opportunity. There is no in between, and you certainly cannot be a seller of this market anytime soon. Yes, you could get lucky but at the end of the day, you could have said that multiple times on the way up to this massive level. The market continues to be one way at the moment, but something will make this crash, it always does.
At best, this is a market that could go sideways for a while but at this point, it does not even look like it is ready to do that. This is quite remarkable, but as long as the bond markets continue to sell off, driving yields much higher, the US dollar will continue to skyrocket against the Japanese yen. The market has been rather violent to the upside, and I would anticipate that once we do get a pullback, it will be just as violent to the downside.
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This article was originally posted on FX Empire
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