USD/JPY Forecast – US Dollar Continues to Recover
US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied significantly during the trading session on Monday to show signs of life again, as it looks like we are ready to continue the longer term uptrend. I had been suggesting that perhaps we were forming a basing pattern which could send this market to the upside, therefore it’s not a huge surprise, and now that we have broken out of the short-term consolidation, I do think it makes a lot of sense that we continue to go higher.
This is not to say that is going to be easy, just that I think we are going to continue to grind in a relatively slow manner. Keep in mind that the US dollar will continue to get a bit of a bid due to the fact that interest rates in America are so much higher than Japan, but at the same time the markets will continue to be very choppy and volatile. Ultimately, the market that most traders watch for Japanese Yen strength or weakness is this one, so keep in mind that this will have a bit of a “knock on effect” in other Yen related pairs.
The trendline underneath is worth watching, and I do think that there is a major amount of support in this general vicinity. With this in mind, I am a buyer of this pair and I do think that it is only a matter of time before we continue to go much higher. Whether or not we can get back to the ¥150 level is a completely different question, but I suspect somebody out there is trying to get there.
USD/JPY Forecast Video for 22.11.22
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