USD/JPY Price Forecast – US Dollar Continues to Fight Against Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar is continuing to rally against the Japanese yen, as the quantitative tightening is just now starting. Because of this, the market may have a lot to adjust to, coming out of the Federal Reserve that is. We also have an interest rate hike this week, but that is already known. The question now is going to be just how aggressive will the Federal Reserve be? If they choose to become even more aggressive, then it’s likely that the US dollar will continue to tear apart the Japanese yen.

After all, the Bank of Japan continues to engage in quantitative easing, making this the best “pure speculative bed” out there. You have 2 central banks that are diametrically opposed in their strategies, so it does make sense that the currency will be moving in one direction overall. I think at this point in time we need to pull back in order to find support or value along the way, with the ¥142.50 level being the most obvious support level. After that, then you have the ¥140 level which is also going to be backed up by the 50-Day EMA rather quickly.

If and when we finally break above the ¥145 level, it’s likely that we will see this market try to get to the ¥147.50 level, and then maybe even the 150 and level where I would expect a lot of psychological and noisy trading. Ultimately, this is a “by the dips” type of situation until the Federal Reserve or the Bank of Japan changes its attitude.

USD/JPY Price Forecast Video for 21.09.22

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