USD/JPY Price Forecast – The US Dollar Continues to Grind Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gapped higher during the open on Monday, pulled back, and then shot higher. However, we are starting to pull back again, so it looks like volatility is going to continue to be a major issue. The ¥145 level above should continue to be resistance, as we see a lot of noise out there. The ¥145 level was basically where the Bank of Japan got involved and started shorting this pair.

That does not mean that we cannot go higher, because quite frankly central bank interventions don’t work for the long term under most circumstances. It is simply a mechanism where they tried to slow down the rate of change, because market forces are much bigger than central banks. Having said that, it’s very possible that we may look at this through the prism of consolidation for a while, which would make a certain amount of sense considering just how noisy things have been over the last several days. Ultimately, I still have no interest in shorting this pair, nor do I have any interest in selling the US dollar overall.

The attitude of the pair still is going to be cautious in the short-term but I do think that eventually the longer term uptrend comes into play. In fact, we would need to see the Federal Reserve change its monetary policy or the Bank of Japan do the same in order for this pair to change its overall trajectory at this point.

USD/JPY Price Forecast Video for 27.09.22

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