USD/JPY Price Forecast — The US Dollar Continues to Consolidate

US Dollar vs Japanese Yen Technical Analysis

The US dollar has pulled back slightly in the early hours on Thursday as we continue to see a lot of back and forth. That being said, the market is essentially just in a holding pattern, as we wait for Powell to make his speech on Friday morning. The Jackson Hole Symposium will continue to be the main focus of traders in the short term, but longer-term it’s all about the Bank of Japan and its need to keep interest rates lower. After all, the central bank is trying to keep interest rates down to 0.25% or lower on the 10-year note, which is essentially the same thing as printing the yen.

Japan is pretty much the only major central bank in the world that is doing quantitative easing, so it does make sense that the currency continues to pay the price. After all, the market continues to be more or less a “buy on the dip” type of situation, and with the ¥137.50 level above offering resistance, if we can break above there then that might be the floodgates opening for a fresh, new high.

The 50-day EMA sits just below the ¥135 level, so I believe that is the support level that you need to be paying attention to. The market will continue to see a lot of volatility, but that’s nothing new for this pair. Ultimately, I think this is a market that will continue to be noisy, to say the least. This is also a market that has been in a longer-term uptrend, and I just don’t see how that changes anytime soon.

USD/JPY Price Forecast Video for 26.08.22

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