USD/JPY Forecast – US Dollar Stagnates After Huge Move Against Japanese Yen

USD/JPY Forecast Video for 23-01-2024

US Dollar vs Japanese Yen Technical Analysis

The US dollar drifted a little bit lower during the trading session on Monday, but really at this point, this is a market that we have seen a lot of upward trajectory recently. And therefore, we have to work off a little bit of froth. The 147.33 level is an area underneath that will continue to be supported, I believe, and if we do bounce from there, it’s likely we could go higher. On the other hand, if we break down below the 147.33 level, then it’s possible that we could go down to the 50-day EMA. Underneath the 145 yen level offers a significant amount of support as well.

Short-term pullbacks will continue to be a major issue and I think at this point, you’re just looking for some type of value. While I don’t necessarily want to short this market, I would be a bit cautious about buying into it all the way up here. I do think that you will eventually get some type of value that you can take advantage of, but right now we just don’t see it.

Given enough time, I believe that this is a market that will eventually have to figure itself out from a longer term perspective, but right now it just looks a bit heavy. Longer term, I think that we could reach the all-time highs again, but again, that is going to be something that takes a lot of effort, and therefore I’m not putting a lot of money into this pair somewhere closer to the 50 day EMA, I’d be much more interested in buying. Again, I have no interest in shorting, and in fact, I think we’re very much still in an uptrend.

And even though the Bank of Japan has an interest rate decision overnight and a press conference, they’ve shown time and time again that they don’t really want to do anything to raise interest rates or tighten monetary policy. So, I think there will be perhaps a little bit of a sell-off due to some type of jawboning, that should be your opportunity.

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