USD/JPY Forecast – US Dollar Sees Noisy Behavior

USD/JPY Forecast Video for 13.06.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar continues to see a lot of noisy sideways action against the Japanese yen, as we are in the midst of forming something along the lines of a bullish flag. Furthermore, we just broke out of a major ascending triangle a couple of weeks ago, and therefore it looks like the market is trying to find its footing. Now that we have the Federal Reserve meeting on Wednesday, there’s a lot that could come out of that as well, not to mention the fact that the Bank of Japan has a meeting on Friday, although they have already stepped in front of that and suggested that not much was going to change.

If the Federal Reserve were to raise rates yet again, that might shock the market a bit, sending the pair higher. Ultimately, I do think that’s what happens anyway, due to the fact that the Bank of Japan is showing absolutely no proclivity to change its monetary policy anytime soon. With that being the case, the interest rate differential alone will be interesting for people out there to take advantage of.

Underneath, the ¥138 level seems to be a major support level, with the 50-Day EMA racing toward it to offer a bit of support. It’s not until we break through all of that that I would be somewhat concerned with the uptrend. This does not mean that it will be easy to go higher right away, but what it does suggest is that there are plenty of buyers willing to take advantage of “cheap US dollars” along the way.

On the upside, the ¥141 level is a barrier that a lot of people will be paying attention to, as it is previous resistance and it does make quite a bit of sense that we would see the market trying to break it. If we do break above there, then you kick off the next leg higher which could be a measured move all the way up to the ¥148 level, based upon not only the potential bullish flag, but also the ascending triangle that was such a huge part of this market previously.

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