USD/JPY Forecast – US Dollar Continues to Break Out

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Published: Sep 25, 2023, 13:38 GMT+00:00

The US dollar continues to rally against the Japanese yen during the session on Monday, as it looks like we are trying to do everything we can to go higher.

USD/JPY Forecast Video for 26.09.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar rallied early during the trading session on Monday, as it looks like we are trying to do everything we can to break out to the upside. The market continues to see a major interest rate differentials driving this pair higher, as the US dollar obviously has much more in the way of interest rates helping that dollar pick up momentum against the Japanese yen, as the Bank of Japan does everything it can to keep interest rates low.

The reading of this chart is the same as it has been for some time now, that I am a buyer on any dip, as this market should continue to see plenty of bullish pressure. I believe that we are going to go to the ¥150 level in the longer-term, but it may take some time to get there due to the fact that we have seen so much in the way of noise in this general vicinity in the past. Furthermore, some Japanese officials have done what they can to jawbone this pair back down, but at the end of the day, the Bank of Japan announcement show just how feeble the bank is right now and how it really can’t do anything to fight a shrinking Japanese yen.

Ultimately, this is a market that is in an uptrend for quite some time, and I don’t think that changes anytime soon. All things being equal, this is a situation that only has one way that it can go, but that doesn’t necessarily mean that he gets there overnight. Underneath, the 50-Day EMA is sitting around the ¥145 level and is rising. The 50-Day EMA is an indicator that a lot of people pay close attention to, so that of course is worth keeping in the back of your mind. Ultimately, I think this is a pair that every time he pulls back, it offers a significant amount of value. The overall attitude of this market is one that still sees plenty of upward possibilities, but make sure that you are not chasing the market when it gets a little overextended.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.