USD/JPY Price Forecast – The US Dollar Finds Buyers on the Dips

US Dollar vs Japanese Yen Technical Analysis

The US dollar has initially fallen during the trading session on Thursday but found enough buyers to turn things around and show signs of life. At this point, the market is likely to continue being a “buy-and-hold” type of market, as we continue to see so much in the way of buying. After all, the Bank of Japan continues to flood the markets with yen, as they are trying everything they can to keep interest rates below the 0.25% level on 10-year JGBs.

On the upside, the ¥135 level would be a target that traders will be aiming for. If we can break above there, then it’s possible that we could go to the ¥140 level. Quite frankly, there’s nothing on this chart that suggests that we aren’t going to continue to go higher over the longer term, and therefore I don’t have a setup where I would be looking to sort this market anywhere above the 50 Day EMA, currently at the ¥127.50 level. Admittedly, we are a bit overstretched, but that has not stopped this pair in the past. Ultimately, the US dollar is going to continue to get a bit of a lift due to the fact that the Federal Reserve is likely to be very tight with its monetary policy going forward, especially in comparison to Japan.

Looking to buy on dips continues to be the best way going forward, as the market continues to see a lot of people chasing foam oh and trying to get advantages based upon price. The ¥135 level might be a little bit of a hurdle, but eventually the market should break through there.

USD/JPY Price Forecast Video 10.06.22

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