USD/JPY Price Forecast – The US Dollar Pulls Back

US Dollar vs Japanese Yen Technical Analysis

The US dollar has pulled back a bit against the Japanese yen during trading on Wednesday, but at this point, we are still very much in an uptrend. The Federal Reserve has an announcement later in the day, so it should not be a huge surprise to see a little bit of a volatile move. Nonetheless, there will be people a bit nervous about this move, but the trend has not changed, nor will it change by the end of the day.

Looking at the ¥132.50 level, I think that is an area that will bring in a lot of support, assuming that we can break down below the ¥134 level, an area that has been rather supportive as of late. I understand that there is a lot of volatility out there, and I certainly understand that we had extended this move a bit too much. However, I also recognize that this is a market that is going higher based on the Bank of Japan doing everything they can to keep interest rates lower, and therefore they are essentially doing what could be explained as “printing yen.” At the same time, the Federal Reserve is going to be very tight with its monetary policy, and that is something that more likely than not is not going to change anytime soon.

The question now is whether or not the Federal Reserve raises by 75 basis points, 50 basis points, or even 100 basis points. Regardless, the trajectory of this pair should continue to be higher, at least until something fundamentally changes in Tokyo. Shorting is something that I’m not even remotely interested in doing.

USD/JPY Price Forecast Video 16.06.22

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