USD/JPY Forecast – US Dollar Continues to Climb Against JPY

USD/JPY Forecast Video for 23.06.23

US Dollar vs Japanese Yen Technical Analysis

The market is steadily approaching the ¥142.50 level, a previous swing high, indicating efforts to gather enough momentum for a significant move. Notably, the recent breakout of a bullish flag pattern and an ascending triangle pattern further reinforce the optimistic sentiment, hinting at the potential for the USD/JPY pair to reach or exceed the ¥148 level.

Upon analyzing the chart, it becomes apparent that the ¥138 level poses significant resistance. This level, having served as a strong resistance in the past, carries substantial importance due to “market memory.” Intriguingly, it aligns with the bottom of the bullish flag pattern, further emphasizing its potential as a crucial support level. If the market were to break below this level, it would likely trigger considerable selling. Adding to its technical significance is the presence of the 50-Day EMA in the vicinity.

Considering the broader market context, there is a favorable setup for further upside potential, making buying dips an attractive strategy. The longer-term perspective also suggests the possibility of a significant move, particularly with the potential target of ¥148 based on the bullish flag pattern. Moreover, the Bank of Japan’s commitment to maintaining loose monetary policies aligns with this bullish outlook. Even if the Federal Reserve decides not to raise interest rates in the upcoming meeting, the substantial interest rate differential between the US dollar and the yen remains advantageous, serving as a strong driving force for this market.

In the end, the rally of the US dollar against the yen continues, with the market steadily approaching the ¥142.50 level. The breakout of the bullish flag pattern and the presence of an ascending triangle pattern further solidify the positive outlook. Notably, the ¥138 level holds significance as a resistance-turned-support level due to “market memory.” A substantial amount of selling could ensue if this level fails to provide support.

Looking at the bigger picture, the longer-term perspective indicates further upside potential, supporting a strategy of buying dips. The Bank of Japan’s commitment to ultra-loose monetary policies adds momentum to the trade. Regardless of the Federal Reserve’s upcoming interest rate decision, the substantial interest rate differential between the US dollar and the yen remains a significant driver in this market. Traders are advised to remain attentive to potential buying opportunities, especially on dips and the ongoing bullish momentum in the USD/JPY pair.

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