USD/JPY Forecast – US Dollar Bounces From Trend Line

USD/JPY Forecast Video for 28.11.22

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied a bit during the trading session on Friday, as we had reached the uptrend line. The uptrend line of course has been important for a while, so it does make a certain amount of sense that we see this market try to recover. That being said, we still have the ¥140 level above that could cause some issues, so with that in mind I think that we’ve got a situation where markets are likely to continue being very noisy in this general vicinity.

If we were to break above the ¥140 level, that it’s likely that we go looking to the ¥142.50 level, right around where the 50-Day EMA is currently hanging out. That should be an area of resistance as a result. That being said, if we could break above there, then it could send the US dollar back to the ¥145 level.

The alternate scenario is that the market will break down the most recent low, and then slice through the ¥137.50 level. In that scenario, then I suspect that this is a market that is looking to the 200-Day EMA. The 200-Day EMA is at the ¥135 level, and I think at that point we start to define whether or not we are in an uptrend. Granted, the Bank of Japan continues to buy unlimited bonds, therefore they are printing unlimited yen. In that scenario, it’s difficult to imagine that the trend changes anytime soon, but stranger things have happened. Ultimately, I think this is a sign that we are going to push higher, or at least attempt to do so.

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