USD/JPY Forecast – US Dollar Stabilizes Against the Japanese Yen

USD/JPY Forecast Video for 17.04.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar went back and forth during the trading session on Friday as we continue to see a lot of volatility in Forex markets around the world. That being said, the market sits just below the 50-Day EMA, which of course is an indicator that a lot of people will be paying attention to. However, the 50-Day EMA, and the 200-Day EMA for that matter, are both relatively flat so I don’t know whether or not the markets will pay a lot of attention to it. That being said, if we break above there, then it would be sign of strength.

On a breakout above the 200-Day EMA, then the market could go looking toward the ¥135 level, which is an area where we had seen resistance previously and have even seen support from time to time. It’s a large, round, psychologically important figure, so that in and of itself will probably have a lot of influence on the fact that it is not only a magnet for price, but it’s also going to offer a little bit of volatility if we get to that area.

On the other hand, if we break down below the bottom of the candlestick for the trading session on Thursday, we could see the market dropped back down to the ¥131 level, an area that has been important previously, and therefore I think it could offer a significant support. If the market were to break down below the ¥130 level, then the very last messages of support would be near the ¥127.50 level, which was where we formed a double bottom.

Ultimately, this is a market that will continue to be very volatile, but at the end of the day I think we get a situation where we will have to pay attention to the bond markets and interest rates, as the market is highly influenced by the 10 year notes from both countries and the differential. Remember, the Bank of Japan continues its yield curve control policy as well, which also has a major influence on this pair.

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