US Dollar Has a Strong Run Against the Japanese Yen for the Week

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has rallied rather significantly during the course of the trading week against the Japanese yen initially but has turned around to fall quite drastically. That being said, the market is likely to see quite a bit of trouble just above, especially as the ¥125 level has been major resistance on the monthly chart, going back several years. Because of this, and the fact that we had been so parabolic, it makes quite a bit of sense that we could pull back from here.

One of the major correlations that I have been seen over the last several weeks has been the 10-year note and this pair. As the 10-year note falls, driving yields higher in America, this pair has been rallying right along with it. If that starts to turn around, and it certainly looks as if it is trying to, it should cause a bit of a pullback in this market.

Whether or not that sticks for the long term is a completely different question, but at this point, it certainly looks as if it is a real threat. Because of this, I would not be surprised at all to see a significant pullback in the short term. If we break down below the ¥117.50 level, then I think it could be a rather drastic turn of events. The market certainly looks as if it is setting up for a nice recovery rather soon, and that would be triggered by breaking below the bottom of the pinbar.

USD/JPY Weekly Price Forecast Video 04.04.22

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