USD/JPY Price Forecast – The US Dollar Continues to Threaten the Same Barrier

US Dollar vs Japanese Yen Technical Analysis

The US dollar has shown a little bit of strength during the trading session on Thursday against the Japanese yen, but we still see a lot of resistance at the ¥145 level, and therefore I think it tells me that the market is trying to figure out what to do about the jobs number. Remember, this pair is highly sensitive to the Non-Farm Payroll figures, and therefore we could see some type of clarity later in the Friday session.

If we break to a fresh, new high, it then comes down to the amount of momentum that the pair has as to whether or not the Bank of Japan gets involved yet again, as they had intervened in the Forex markets about 10 sessions ago. The best way to think about this is not necessarily a specific price that they are defending, but a rate of change. They need the market to at least be orderly on the way up, as they are trying everything they can to keep rates down in Japan, but if the currency continues to get eviscerated so rapidly, that type of inflation can be horrible for an economy.

Ultimately, this is a market that I am more of a “buy on the dip” type of trader, with the ¥142.50 level being a prime piece of real estate as far as buying is concerned, followed by the ¥140 level, which has the 50-Day EMA hanging about as well. The overall uptrend is still very much intact, and will continue to be as long as the 2 central banks are so opposite as far as monetary policy.

USD/JPY Price Forecast Video for 07.10.22

For a look at all of today’s economic events, check out our economic calendar.