USD/JPY Forecast – US Dollar Continues to Find Buyers on Dips

USD/JPY Forecast Video for 14.06.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar pulled back just a bit during the trading session on Tuesday, but we still have plenty of support underneath. Ultimately, it looks like we are trying to form some type of bullish flag, and if we can take out above the top of that pattern, then it’s likely that we could go much higher. The ¥141 level above has been resistive, so I think that’s an area that a lot of people will be paying close attention to.

Keep in mind that the pair has been waiting for the Federal Reserve announcement on Wednesday, and then of course the Bank of Japan and its monetary policy statement on Friday. All things being equal, this is a market that I think continues to see a lot of volatility in noisy behavior, but I do think that it’s probably only a matter of time before we break out to the upside. The bullish flag measures for a move all the way to the ¥148 level, which coincides with the measured move of the ascending triangle that we just broke out of.

Speaking of the ascending triangle, the ¥138 level is the previous resistance barrier from the triangle, and therefore I think there will be a certain amount of “market memory” that comes into the picture if we do fall. Furthermore, we also have the 50-Day EMA racing toward the ¥138 level, which is an area that a lot of people should pay close attention to. As long as we can stay above the ¥138 level, then I think the US dollar is still very strong against the Japanese yen, and therefore I think you continue to see plenty of “buy on the dips” type of situations. I do think that this will probably take some time to get to the upside, but it could be noisy over the next several days, as we have the central banks coming into the picture, with the Federal Reserve and the Bank of Japan both causing noise. However, I think the trend is firmly ensconced, so it’s probably only a matter of time before we go much higher.

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