USD/JPY Price Forecast – The US Dollar Pulls Back Slightly

US Dollar vs Japanese Yen Technical Analysis

The US dollar has pulled back a bit during the trading session on Friday as it looks like we are probably going to seek a bit of profit-taking heading into the weekend. Ultimately, this is a market that I think will eventually find buyers on dips, as we are in such a strong uptrend. After all, the market continues to see the Bank of Japan do things to drive down interest rates, not the least of which would be buying bonds in an unlimited manner. As long as that’s the case, it’s likely that the market is going to see plenty of buyers jump into the market and try to pick a bit of value.

The ¥135 level is a large, round, psychologically significant figure in the market and should be an area where we will see a lot of support. That being said, if we were to break down below there, the 50 Day EMA is sitting just above the ¥132.50 level, which is an area where a lot of people who are bullish will probably be looking for an opportunity to get long.

If we were to break down below there, that could open up the possibility of a move down to the ¥130 level, which is an area where we can see a lot of support as well. If we break down below that level, then we could see a huge change in the overall direction. That being said, I would also take a look at a move above the candlestick from Thursday, then we would almost certainly go look to the ¥140 level. Ultimately, this market remains extraordinarily bullish.

USD/JPY Price Forecast Video for 18.07.22

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