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

US Dollar vs Japanese Yen Technical Analysis

The US dollar rallied a bit during the trading session on Monday against the Japanese yen, but then pulled back just a bit to show signs of hesitation. The ¥135 level continues to be a bit of a magnet for the price, as it has been supported and now is starting to ask questions of resistance. Ultimately, this is a market that I think will eventually figure out what to do next.

The 50-Day EMA underneath looks as if it will offer a bit of support as it is a widely followed technical analysis indicator, and therefore attracts a certain amount of attention regardless. Given enough time, I do think that we probably go closer to the ¥137.50 level, but at the end of the day, the market will probably be focusing quite a bit on CPI numbers coming out of the United States, as we have seen inflation be a major driver of where we go next.

At this point, I think that it comes down to whether or not the Federal Reserve is likely to continue to go tight with its monetary policy, or if it is going to have a reason to loosen up a bit. That being said, I don’t think that’s very likely, so we will more likely than not continue to see pressure to the upside.

All things being equal, this is a market that will continue to be noisy, but I think probably has more upward pressure than down, especially due to the fact that the Bank of Japan continues to step in and buy unlimited bonds.

USD/JPY Price Forecast Video for 09.08.22

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