USD/JPY Price Forecast – US Dollar Continues to Climb

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied again during the trading session on Wednesday, as we watch the Bank of Japan continue to buy unlimited bonds, but at the same time we have seen PPI numbers in the United States come out hotter than anticipated, rising 0.4% month over month, as opposed to the 0.2% level. Ultimately, inflationary concerns have people believing that the Federal Reserve will have to stay extraordinarily tight, and quite frankly that’s exactly what they have been saying. As long as that’s going to be the case, then the US dollar will be the big winner before it’s all said and done.

A pullback to this point in time should just be a simple buying opportunity, specially at the ¥145 level. The ¥145 level is an area that previously had been significant resistance, which we had broken through, but then the Bank of Japan did everything they could to drive down the price by intervening in the Forex markets, but central bank can only slow down a move like that, not necessarily reverse it. That being said, the move higher has not been reckless, so as long as that’s the case, it’s very likely that the Bank of Japan will have to deal with this. That’s especially true if the Federal Reserve is forced to remain tight, which numbers like the PPI announcement on Wednesday will certainly force that to be the case.

Pullback to this point should be buying opportunities, and I will look at it through that prism. I don’t necessarily want to try to short this market, nor do I want to chase it all the way up here. Either way, this is a market that I think is going to continue breaking higher.

USD/JPY Price Forecast Video for 13.10.22

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