USD/JPY Price Forecast – US Dollar Continues to Look For Momentum

US Dollar vs Japanese Yen Technical Analysis

The US dollar has pulled back a bit against the Japanese yen during trading on Wednesday but continues to see buyers on dips being the mantra. Ultimately, I think this is a market that will find its way to the upside, perhaps eventually threatening the ¥145 level. This is an area that I think will be difficult to break above, but if and when we do, this pair is going to take off again.

I do think that given enough time; any pullback does find buyers. I suspect that the ¥142.50 level should continue to be important, at least for the short term. After that, you have the ¥140 level, and then of course the 50-Day EMA which is currently at the ¥137.50 level. Yes, I recognize that this market is a little overbought, but this has been the pattern for a while, dipping a little bit, shooting straight up in the air, and then going sideways to work off some of the froth. There’s nothing on this chart to suggest that this is going to change anytime soon.

If and when we can break above the ¥145 level, that opens up a move to the ¥147.50 level, as the market does tend to have a reaction every 250 pips or so. Furthermore, you should keep in mind that the Bank of Japan is going to continue to fight rising interest rates while the Federal Reserve is going to tighten. Because of this, it’s very likely that this market will stay in this same pattern for the foreseeable future.

USD/JPY Price Forecast Video for 15.09.22

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