USD/JPY Price Forecast – The US Dollar Gaps and Takes Off

US Dollar vs Japanese Yen Technical Analysis

The US dollar is continuing to show strength against the Japanese Yen, as the market has been like a wrecking ball against it. The market should continue to see plenty of buyers on dips, as it gives us an opportunity to pick up “cheap US dollars” in relation to the Japanese yen as the Bank of Japan continues to fight interest rates. The quantitative easing coming out of Tokyo will continue to put downward pressure on the Japanese yen overall, and I do believe that it is probably only a matter of time before we see the US dollar breakout to a fresh high near the ¥140 level.

On pullbacks, I believe that the 50 day EMA has to be paid close attention to, which is sitting right around the ¥135 level. I believe that is your short-term floor in the market, but even if we break down below there, then it’s likely that we would see an attempt to break down through the ¥132.50 level, which is what we need to see broken in order to have a more bearish turn of events.

I just don’t see that happening, and therefore it’s not really thought at this point. Once we break above the ¥140 level, the market will then enter another longer “buy-and-hold” type of situation. All markets will continue to be noisy, therefore I think you need to be very cautious with your position sizing. Ultimately, this is a market that is like a freight train.

USD/JPY Price Forecast Video for 30.08.22

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