USD/JPY Forecast – US Dollar Continues to Threaten Resistance Against the Yen

USD/JPY Forecast Video for 15.09.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gone back and forth during the course of the trading session on Thursday, as it looks like the ¥147.80 level continues to be a major barrier, but it also looks like we are eventually going to try to break above there. After all, every time we dip, buyers come in to pick up this market. This makes sense, considering that traders get paid to hold onto the position via swap at the end of every day. With that being the case, I think this is a market that continues to see a lot of volatility, but quite frankly I also see the high likelihood that eventually we will break out.

The Bank of Japan has no real plans of tightening anytime soon, and therefore it makes sense that the US dollar continues to swallow the Japanese yen whole. The market will continue to be very noisy, and of course we will have to pay quite a bit of attention to a lot of the nonsense going on around the world, and this could continue to drive money into the US dollar anyway. Yes, the Japanese yen is typically thought of as a safety currency, but at the same time, the Bank of Japan is doing everything he can to destroy its own currency as it keeps interest rates so low.

The Federal Reserve is likely to remain tight for longer, so I do think that it is probably going to be a situation where we eventually see this market take out the highs just above, therefore it is likely to go racing toward the ¥150 level. In fact, the ¥150 level is my longer-term target, and I do think that we get there eventually. Short-term pullbacks continue to be buying opportunities, with massive support at the ¥145 level, and even more at the ¥144 level where the 50-Day EMA currently resides. All things being equal, I do think that the market eventually takes off to the upside. I have no interest in shorting this pair, at least not anytime soon and it would take the Bank of Japan or the Federal Reserve changing their complete policy for me to consider it.

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