USD/JPY Price Forecast – US Dollar Continues to Power Higher

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied significantly during the trading session on Wednesday to reach the ¥129.50 level. We now look likely to reach the ¥130 level, which is a large, round, psychologically significant figure. We are probably due for a short-term pullback, but we have just broken out of a “falling wedge”, which is a very bullish sign. If we can break above the highs, then it’s likely that we will continue more of a “buy-and-hold” type of market. The US dollar rallying against the Japanese yen would be a simple continuation of what we had seen so much of previously.

At this point, any pullback will more likely than not be a buying opportunity, especially with the 127.50 level offering so much support over the last couple of weeks. The 50 Day EMA sits just below there as well, so does make a lot of sense that there will be buyers in that general vicinity as well. Ultimately, I have no interest in shorting this market, but I do recognize that there will be the occasional pullback that will have to be dealt with.

Look at those as value, as the Federal Reserve remains hawkish, and the Bank of Japan has reiterated in the last 24 hours just how dovish they are going to be. Because of this, it’s very likely that we will continue to see the Japanese yen beat up by other currencies around the world, especially those from central banks that have explicitly said that they are going to start tightening. This is not only the US dollar but several of the commodity currencies as well such as the Canadian dollar.

USD/JPY Price Forecast Video 02.06.22

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