USD/JPY Forecast – US Dollar Pulls Back Against the Japanese Yen

USD/JPY Forecast Video for 08.09.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar has fallen a bit during the trading session on Thursday, initially trying to rally before giving it back. That being said, the market is still very bullish and I do think that it is probably only a matter of time before we continue the overall uptrend. However, some people are worried about the possibility that the Bank of Japan may get involved again, but really at this point in time, it should be noted that every time the central banks intervene, it tends to fail. Because of this, I think it’s probably going to be a market that you can buy dips in, and we are already starting to see a little bit of a pushback against the selling pressure during the US session.

The 50-Day EMA sits right around the ¥144 level, and is rising. Keep in mind that we are eventually going to go looking to press against that consolidation area, which of course had been so important for so long. I think given enough time we do go to the ¥150 level, just based upon the interest rate differential by itself. With that being said, I think we’ve got a scenario where the market will continue to see a lot of volatility, and therefore you should be cautious with the position sizing, but it’s not just this pair that I can say that about, quite frankly it’s every pair that I watch. Ultimately, this is a market that cannot be sold, leased not anytime soon as the Bank of Japan is still engaging in quantitative easing, despite the fact there might be a little bit of jawboning from time to time coming out of Tokyo.

If we do break down below the ¥144.50 level, then you could start to make an argument toward a deeper correction, but at this point I think is probably only a matter of time before we would see value hunters coming back into the picture and take advantage of “cheap US dollars” overall. With this, I do believe that this market continues to offer a bullish market that you can trade given enough time.

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