USD/JPY Forecast – US Dollar Finds Resilience

USD/JPY Forecast Video for 27.11.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially fell during the trading session on Friday, but found enough support near the 50-Day EMA that it looks like we are going to attempt to turn around and take out the ¥150 level eventually. The last couple of days have been rather quiet, but that’s not a huge surprise considering that Thursday was Thanksgiving, and of course Friday is typically a very quiet day in America as well. With that being the case, it’s also worth noting that the ¥147.80 level has offered significant support, kicking off the recovery.

Taking a look around the rest of the currency markets, it’s clear that the Japanese yen is still a big loser, and most currencies are going to appreciate against it. With that being said, I think you get a situation where the market is going to continue to see a lot of noisy behavior, eventually pushing this market back to the highs again. The interest rate differential favors the US dollar still, despite the fact that rates have dropped a bit as of late. I have no interest in buying the Japanese yen overall, and certainly not against the US dollar which also functions as a safety currency.

Simply put, I do think that there is going to be a significant amount of noisy behavior, but I also recognize that there are buyers underneath willing to take advantage of “cheap US dollars.” If the US dollar gets a little bit of abuse against currencies in general, that will also help this pair, so regardless, I think you get a situation where you eventually see this pair go much higher.

If it breaks above the ¥152 level, then my next target is the ¥155 level. While other currencies have been absolutely ripping to the upside against the yen, the US dollar may be a little less rapidly ascending, but at the end of the day, I think it all moves against the yen so with that being the case, I just don’t see any other way than to get long of this pair. Every time it drops, it seems like buyers are willing to step in and pick it up yet again.

For a look at all of today’s economic events, check out our economic calendar.