USD/JPY Forecast – US Dollar Reaches ¥130

USD/JPY Forecast Video for 23.01.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar has broken above the ¥130 level early New York trading on Friday, as we have seen the markets continue to probe to the upside for a potential move against the yen. After all, the Bank of Japan has reiterated its desire to keep interest rates on the 10 year note down to 50 basis points, and that means they will probably have to print massive amounts of yen. That’s exactly what sent the market higher to begin with, and now we have a situation where we could be looking at more of the same.

One thing to keep an eye on is the massive inverted hammer that formed on Wednesday, because if we were to break through that, I think you’d have a lot of momentum entering the market to the upside in that point in time. The ¥130 level obviously has a certain amount of psychology attached to it, but if we can blow through it, and attempt on that level would be very realistic.

On the other hand, if we turn around and breakdown below the ¥130 level and cannot keep it above there, then it’s likely that we do more consolidation and therefore go looking to bounce around between the ¥127.50 level and the ¥130 level.

Anything below the ¥127 level would be very negative, because I do see a bit of an air pocket underneath. In other words, this pair desperately needs to turnaround at this point, or we have a situation where the market is going to completely fall apart. That being said, the Bank of Japan seems pretty intent on keeping those rates down.

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