USD/JPY Price Forecast – The US Dollar Looking Heavy Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has fallen slightly during the trading session on Wednesday as we continue to see a lot of noisy behavior. Keep in mind this pair is highly sensitive to risk appetite and interest rates at the same time. Speaking of interest rates, the Bank of Japan continues to be a major factor in this market, as they continue to fight interest rates rising in that country. In other words, they are essentially on a path of printing currency.

The Federal Reserve is very hawkish at the moment, and therefore the US dollar continues to see inflows. Interest rates have been spiking in the United States for ages, and it suggests that the market has continued to favor the markets. Ultimately, this is a situation where you will see quite a bit of volatility, and therefore I think a lot of buyers will come back into this market anytime they see the market pullback.

The ¥127.50 level is an area that has been supported multiple times and should continue to be. However, if we were to break down below there, the ¥125 level is the next area where I would anticipate buyers coming back in. Ultimately, this is a market that has been in a strong uptrend for quite some time, and I do not see that changing anytime soon.

Keep in mind that there could be a run into the Japanese yen if we get a major risk-off moment around the world, but even then it will be somewhat muted in this pair as the US dollar is also considered to be a safe currency. In that scenario, you are going to be better off shorting something like the NZD/JPY pair.

USD/JPY Price Forecast Video 19.05.22

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