USD/JPY Price Forecast – The Us Dollar Tests Major Support Level

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially pulled back against the Japanese yen during the trading session on Monday, but it appears that the ¥127.50 level is going to continue to attract a certain amount of order flow. Because of this, the market will see a certain amount of support come into play. At this point, if we do bounce I think that what we are looking at is a situation where the market may go sideways in order to find its momentum. At this point, the market is likely to continue seeing a lot of resistance near the ¥130 level, which of course is a large, round, psychologically significant figure.

If we were to break down below the lows of the last couple of candlesticks, it could open up a move down to the 50 Day EMA, currently sitting at the ¥126 level. After that, the ¥125 level would attract a lot of attention that people would more likely than not be trading off of. A break below the ¥125 level allows for a bigger correction, but at this point, I do not see that happening. I think that the market is more likely than not going to go sideways in order to work off the excess froth in what has been in an overextended rally.

Keep in mind that the US dollar is without a doubt the favored currency by most traders right now, and as the Bank of Japan has been fighting rising interest rates, essentially “printing currency.” With that being the case and of course, the Federal Reserve tightening, this market will go higher over the longer term.

USD/JPY Price Forecast Video 24.05.22

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