USD/JPY Forecast – US Dollar Bounces From Critical Figure

USD/JPY Forecast Video for 13.02.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar has initially plunged during the trading session on Friday, only to turn around and show signs of life and the ¥130 level. This is a large, round, psychologically significant figure, so it does make a certain amount of sense that we would see a reaction to it. Whether or not this holds remains to be seen, but it is probably worth noting that we have seen the market look rather stringent and stable over the last couple of weeks. In fact, we had recently formed a bit of a “double bottom” underneath, and therefore I think you have to think that perhaps we are getting close to turning around again.

Underneath, the double bottom should continue to be something that a lot of traders pay attention to, as a piercing of that level would obviously be something that a lot of people pay attention to and therefore would attract a lot of inflows and outflows of money. With that being the case, you have to assume that the bounce during the trading session on Friday is a good sign that perhaps we are getting close to breaking out to the upside, which is something that I think we’ve been working on for a while.

This week has been a bit ugly and difficult to deal with as we have seen a lot of volatility, but at the end of the day, it’s possible that we have just simply seen a significant pullback in what is a longer term uptrend. Remember, the Bank of Japan still have to keep interest rates down and therefore they may have to print yen.

For a look at all of today’s economic events, check out our economic calendar.