USD/JPY Forecast – US Dollar Looks Higher Against the Yen

USD/JPY Forecast Video for 15.06.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar pulled back just a bit during the trading session on Wednesday, as we wait for the Federal Reserve statement later in the day. Ultimately, this is a market that looks as if it is starting to attempt to break above the ¥140 level. The ¥140 level of course is a large, round, psychologically significant figure that a lot of people pay close attention to, and therefore I think a lot of noisy behavior could be expected in this area.

Looking at this chart, you can see that we have been working with a bullish flag for a while, so it wll be interesting to see how this plays out. Ultimately, I think if we do break to the upside, the market does suggest that we have a “measured move” that the ¥148 level is the target of. Ultimately, this is a market that will continue to bounce around due to the interest rate differential between the Federal Reserve and the Bank of Japan, which of course is wide enough to drive a truck through. Granted, there is the likelihood that the Federal Reserve will pause later today, but the reality is that it is still a wide gulf between the 2 central banks.

Looking forward, the market is more likely than not to continue to be bullish. Because of this, I look at dips in price as a potential buying opportunity. The ¥138 level underneath should be very supportive, as it was the previous resistance barrier for the ascending triangle that everybody has been very well aware of in the past, and that was the beginning of the turnaround in this pair again. Ultimately, the Federal Reserve is going to stay tight for quite some time, even if they don’t raise interest rates on Wednesday. Ultimately, this is a market that will continue to see a lot of noisy behavior, but that’s nothing new. Either way, I continue to look to the upside until something fundamentally changes, which at this point in time does not look very likely to happen anytime soon.

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