USD/JPY Forecast – US Dollar Continues to Pressure Yen

USD/JPY Forecast Video for 30-01-2024

US Dollar vs Japanese Yen Technical Analysis

As you can see, the market continues to see a lot of choppy back and forth behavior and I think you’ve got to look at this through a prism of a market that just really doesn’t know what to do with itself. Also, I think it does make quite a bit of sense that we kind of hesitate to put a lot of momentum in the market because we do have the FOMC meeting on Wednesday. And with that being the case, I think you have to look at it through the prism of a holding pattern. This might be a little bit of a consolidation buy on the dip market and I do believe that the 50 day EMA is an indicator that a lot of people need to pay close attention to.

With this, the market looks as if it wants to go higher, but we will have to see what Jerome Powell has to say after the FOMC meeting. That will have a lot to do with where we go next. As things stand right now, the market is likely to continue to see the difference between the US dollar and the Japanese yen interest rates as being the major driver. Because of this, we could go to the 149.80 yen level.

Underneath, if we were to break down below the 50 day EMA, then it’s possible that we could go down to the 145 yen level, where the 200 day EMA is racing towards as well. All things being equal, this is a market that I am bullish on, unless of course the Federal Reserve does something shocking and cuts rates at this meeting on Wednesday. I don’t think they will, and clearly, the Bank of Japan just cannot get out of its own way, so I guess it will stay loose for far too long. And therefore, the yen is still a currency that I don’t want to own.

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