USD/JPY Price Forecast – The US Dollar Continues to Climb Higher Against Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has shot straight up in the air against the Japanese yen yet again. At this point, the market is reaching the ¥134 level, and looking like it’s ready to go much higher. That being said, we are overbought, so I do think that it is only a matter of time before we see some type of pullback. However, that pullback should be a nice buying opportunity to pick up a bit of value. At this point, I would anticipate that the ¥130 level is the floor in the market and is likely to be heavily defended.

On the upside, the ¥135 level is more likely than not the next target, and I would anticipate that there should be a significant amount of psychological resistance. As you can see, the market has been explosively bullish, and I just don’t see how this changes anytime soon. In fact, as long as the Bank of Japan continues to see the need to fight interest rates, the Japanese yen will continue to be hammered. The market is one that cannot be shorted, at least not until we see a change in the central bank policy.

On the other side of the equation, we have the Federal Reserve looking to tighten monetary policy going forward and in fact, has just now started to run off its balance sheet, so that does mean that the US dollar should continue to strengthen in general. At this point, I just don’t see what stops this market from going higher over the longer term. If we were to break down below the 50 Day EMA, then it could change a lot of things but we need some type of fundamental reason to see that happen.

USD/JPY Price Forecast Video 09.06.22

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