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

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gone back and forth against the Japanese yen during trading on Tuesday as we continue to “kill time” right around the ¥135 level. It looks as if the market is trying to build up the necessary momentum to finally break through this level and continue its march higher. Quite frankly, there’s nothing on this chart that suggests that we are going to roll over, and therefore I think that even if we do pull back, there will be plenty of people willing to step in and pick this market up. In fact, you can see that has happened over the last four days quite significantly.

The ¥132.50 level should be significant support, and most certainly the ¥130 level will be as well. It’s not until we break down below the 50 Day EMA that I’m even remotely considering a trend change, and to be honest, it’s more likely that we need to see the Bank of Japan finally decide to step away from its quantitative easing. That seems to be very unlikely, as quantitative easing has been the playbook for Japan over the last several decades.

With this being the case, the Japanese yen will get crushed, because there’s no other alternative. The fact that the Bank of Japan is essentially “printing yen” will continue to be a major problem for this market. Yes, the US dollar has skyrocketed against the Japanese yen, but quite frankly it looks like we have much further to go based on recent action and historical charts. The breakout above ¥130 was a huge deal that is still playing out.

USD/JPY Price Forecast Video 15.06.22

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