USD/JPY Price Forecast – The US Dollar Pulls Back Against Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has pulled back a bit during the trading session on Thursday to break down through the ¥135 level. That being said, the market is still very much in an uptrend, so I’m just sitting on my hands at the moment and waiting for a nice buying opportunity. As soon as we show signs of life, I’m willing to jump in and ride this trend higher, as the fundamentals have not changed at all. After all, the Bank of Japan continues to see a need to fight interest rates, so, therefore, it’s essentially “printing yen.” As long as that’s going to be the case, the Japanese yen is going to be a currency to be sold.

The ¥132.50 level is an area where I think there’s a lot of confluence just waiting to happen, and therefore I think it’s probably only a matter of time before value hunters come back in. That might be a story for next week, and quite frankly this is a longer-term trend that I am more than willing to be patient with. In fact, as long as we stay above the 50 Day EMA, currently at the ¥130 level, there’s not much to suggest that anything has changed. Even then, it’s not technically in a downtrend.

What would change this is if the Federal Reserve cuts back on its interest rate hiking cycle, or if the Bank of Japan steps back and lets interest rates rise in that country. Neither of these seem likely to happen in the short term, so it’s very likely that the trend is still going to continue to go from the lower left to the upper right.

USD/JPY Price Forecast Video 24.06.22

For a look at all of today’s economic events, check out our economic calendar.