The US Dollar Pulls Back Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has pulled back just a bit against the Japanese yen during the trading session on Wednesday as we continue to see plenty of volatility. That being said, the market looks as if it has gotten a little bit overdone so I do think that the market will more likely than not offer value underneath. Ultimately, I have no interest in shorting this market because it has been so strong, so it is difficult to imagine a scenario where I do.

The ¥125 level should be supported, just as the ¥122.50 level should be. The 50 Day EMA is reaching the ¥122.50 level, so it is possible that we would see that area offer a bit of a “floor in the trend”, but it is still a bit early to make that projection. On the upside, the ¥130 level should be significant resistance, based upon the large, round, psychologically significant aspect of that figure.

The market will continue to be rather noisy, but as long as the Bank of Japan has the wherewithal to fight rising bond yields, it will continue to drive down the value of the Japanese currency itself. They are stuck in a situation where they have no choice, and the Forex market is taken advantage of that. Whether or not this continues much longer remains to be seen, so you will have to keep an eye on statements coming out of Tokyo, as it will determine whether or not they are going to remain aggressive. With this in mind, you need to be very nimble, but also recognize that the trend is very much ensconced at the moment.

USD/JPY Price Forecast Video 21.04.22

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