USD/JPY Forecast – US Dollar Pulls Back

USD/JPY Forecast Video for 23.11.22

US Dollar vs Japanese Yen Technical Analysis

The US dollar pulled back against the Japanese yen during trading on Tuesday, giving back some of the gains that we had seen on Monday. Ultimately, this is a market that’s been in an uptrend for a while so it does make a lot of sense that we would see the market eventually find buyers.

Ultimately, I do think that we continue to go higher, reaching the ¥142.50 level, and then the ¥145 level. The trendline underneath has held quite nicely, so therefore I think it does make a certain amount of sense that we would see market participants look at that as a potential signal of continued bullishness.

Because of this, I am looking for dips as buying opportunities and I do believe that eventually we will overcome all of this noise. After all, the Bank of Japan has not changed its monetary policy, and the Federal Reserve looks to be tightening its monetary policy for the foreseeable future. Yes, there has been suggestions that they may slow down the pace of tightening, but they are still going to be light years away from where the Bank of Japan currently sits.

Ultimately, a lot of this comes down to the Japanese and whether or not they will abandon the interest rate controls that they have in place, which are a stark comparison to the rest of the world. Because of this, I think you have to look at this through the prism of trying to find value on these dips, which should occur from time to time. Ultimately, it would not surprise me at all to see this market go looking to reach the ¥150 level.

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