USD/JPY Price Forecast – US Dollar Continues to Consolidate

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied a bit during the trading session on Friday as we continue to see upward momentum in this pair, despite the fact that the Bank of Japan got involved the other day and started buying in. Quite frankly, most central bank actions only slow down a move like this, not reverse it. Because of this, I think it’s probably only a matter of time before the market continues to go higher, but you need to pay close attention to the ¥140 level, and whatever it is that the Federal Reserve is doing. After all, the Federal Reserve is remaining very tight, but central banks around the world are getting close to the breaking point when it comes to their own currencies.

More likely than not, the way forward will be to buy dips, not to sell the pair, at least not quite yet. Don’t get me wrong, someday this will be a great short that you can hang onto for months, but at this point we are not there. In general, this is a situation where we will continue to find choppy behavior, but the direction higher is still the most likely of outcomes.

The 50-Day EMA sits just below the ¥140 level and is rising. This is a market that I think is likely to continue seeing a lot of erratic behavior, so you need to be cautious with the position size of any trade you take, because quite frankly this is a pair that is going to be a major battlefield in the short term. Keep an eye on central banks, that might be where we go next for directionality.

USD/JPY Price Forecast Video for 26.09.22

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