USD/JPY Price Forecast – The US Dollar Continues to Pressure the Upside

US Dollar vs Japanese Yen Technical Analysis

The US dollar pulled back a bit against the Japanese yen after Shinzo Abe was assassinated in Japan. However, this was a very quick reaction, and therefore we started to turn around quite quickly. That being said, it looks as if the markets are priming themselves to finally break out. The ¥136.80 level is now an area worth paying close attention to, as it has been so resistive. Breaking above there allows the market to go much higher, perhaps reaching the ¥140 level.

Pullbacks at this point should continue to see the ¥135 level as a potential support level, as we work off some of the excess froth from the shot higher. Markets have been very noisy as of late, and therefore we should continue to see a lot of back and forth. The noisy behavior that we have seen is indicative of a market that is trying to grind its way through major resistance, and is likely to have a bit of a pullback.

If we do break down below the ¥135 level, I see plenty of support underneath, especially near the ¥132.50 level, where the 50 Day EMA is currently sitting and rising. That dynamic support is something that’s worth paying attention to, but I think even below there we have plenty of support near the ¥130 level. All of that being put together, I think this remains a “buy on the dips” type of situation. I have absolutely no interest whatsoever in trying to short this market. With the Bank of Japan buying as many bonds as possible, it will continue to work against the value of the yen.

USD/JPY Price Forecast Video 11.07.22

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