US Dollar Continues to Plow Higher

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied against the Japanese yen during the trading session on Friday in relatively thin Good Friday trading. The market is threatening the ¥126.50 level. Pullbacks at this point look likely to be buying opportunities and what is an explosive move to the upside. Furthermore, when you look at the longer-term charts, we are breaching a major resistance barrier on the monthly charts, so now things are starting to get very interesting. At this point, the market would become more or less a “buy-and-hold” type of market.

Underneath, I see the ¥125 level as a major potential support level, and then after that, we have the ¥122.50 level as potential support. Keep in mind that the 50 Day EMA is breaking above the ¥120 level, and racing toward all of that potential noise. Because of this, I think it continues to be a “buy on the dips” type of market and hopefully, we have plenty of opportunities to get long again.

The Bank of Japan continues to fight higher interest rates, by essentially doing quantitative easing. In fact, it is knowing the exact opposite of the rest of the world, so that will continue to work against the Japanese yen. The US dollar on the other hand has the Federal Reserve behind it that looks to be tightening aggressively, and that of course keeps this market going in one direction.

Once we break out, this could very well end up being a multi-month, or even possibly multiyear trend change. The trajectory of this market is a little overdone, but at this point I see no real argument to start shorting.

USD/JPY Price Forecast Video 18.04.22

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