USD/JPY Price Forecast – The US Dollar Goes Sideways Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has done very little against the Japanese yen on Thursday, as we are waiting to see whether or not the overall trend will continue, or if a pullback is necessary. To think that we are going to change the trend is a bit of a stretch, but we could make a significant drop in the short term to find a bit of value. After all, the market cannot go straight up in the air forever, so keep that in the back of your head.

The 50 Day EMA is sitting just below the ¥132.50 level and rising. That could be a nice opportunity to pick up a little bit of value, as the market is so bullish. Ultimately, the United States dollar continues to rally against almost everything else, as the Federal Reserve continues to tight monetary policy. This is a “one-way trade” in general, but that does not necessarily mean that you should jump in at any given moment.

That being said, if you are a longer-term investor, then timing won’t matter as much. As for the trend, the ¥130 level underneath would be a major support level, and breaking down below there could change some things, but I would need to see where the fundamental situation sits at that moment. Ultimately, I think this is a situation where we continue to see a lot of noisy behavior, but still favor the upside. The ¥140 level is the next major target, but after this huge move, it may take a while to get there which makes sense considering just how parabolic we had been a couple of different times.

USD/JPY Price Forecast Video 08.07.22

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