USD/JPY Price Forecast – US Dollar Continues Consolidating Against Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has initially fallen during the trading session on Monday, but found support underneath to show signs of life. With that being the case, it looks like the market is going to continue the overall uptrend, but perhaps in a bit of a grind more than anything else. With that in mind, I believe that we have a situation where we probably need to pay close attention to any statements coming out of the Bank of Japan, as they obviously have a huge part in what’s been going on. The market has been very noisy to say the least, as there are questions about global growth, and there is a certain amount of effect on this pair.

To the downside, if we break down below the ¥135 level significantly, that could open up a reasonable pullback, but the ¥132.50 level more likely than not will find plenty of buyers, and therefore I think we probably have further to go. I have no interest in shorting this pair anytime soon, the Bank of Japan continues to work against the value of the yen anyway.

The market has been noisy as of late, but that’s not a huge surprise considering how overbought it is from a longer-term standpoint. That being said, there’s just no way to short this market, it because it can turn around and shoot straight up in the air out of the blue, like it has done multiple times in the past. Until the Bank of Japan changes its attitude, I just don’t see how this pair falls for a bigger move.

USD/JPY Price Forecast Video 05.07.22

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