USD/JPY Forecast – US Dollar Rallies Against Japanese Yen Again

USD/JPY Forecast Video for 09.10.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar rallied rather significantly during the course of the trading session on Friday, as we continue to see a lot of movement based on interest rates. Interest rates of course are rising in America over the longer term, and that continues to push the US dollar higher against multiple currencies, especially the Japanese yen which is backed by a central bank that has a significant amount of quantitative easing, and therefore the interest rates in that country will continue to be almost nothing. Because of this, it makes the US dollar much more appealing to investors. All things being equal, you get paid to hang on to this pair, and that will continue to push this market to the upside.

Underneath, the ¥147.80 level continues to be an area of significant interest, as it was previous resistance. That area should now end up being supported, and with that being the case, this is a market that I think will be paying close attention to that area on any type of drop. That being said, I still think that we get to the ¥150 level, which is the large, round, psychologically significant area that we had tested previously, and of course should offer a bit of a target at this point. If we were to break above there, then the US dollar will rip higher against the Japanese yen. I do believe this happens, but the question is whether or not it happens anytime soon.

Short-term pullbacks continue to offer value that a lot of people will be paying close attention to, and therefore I’ve got an eye on this market for value with the US dollar being my favorite currency at the moment. The Japanese yen is a currency that I do not want to own, as the central bank in Tokyo will continue to work against the value of it. With that being said, I think the Japanese yen is toxic, the US dollar will continue to attract a lot of inflows, if for no other reason than the idea of safety and interest-rate differential between these 2 currencies.

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