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

US Dollar vs Japanese Yen Technical Analysis

The US dollar rallied again on Tuesday as we continue to see plenty of noisy behavior overall. That being said, the uptrend has been very strong for several months, so it does make sense that we would see if this market through the prism of the Bank of Japan continues to fight the overall interest rates rising, thereby putting downward pressure on the Japanese yen overall. The US dollar, on the other hand, has quite a bit of momentum due to the fact that the Federal Reserve is going to continue to tighten monetary policy.

The ¥130 level now acts as the “floor in the market”, with the 50 Day EMA reaching it. The 50 Day EMA continues to see a lot of interest over the longer term, as we have seen an act as dynamic support more than once. The market pulling back to that level could be thought of as the value play that everybody wants, but whether or not they get it could be another question completely. The market looks as if it is going to reach the ¥137.50 level in the near term, and possibly the ¥140 level after that.

There is nothing fundamentally or technically that suggests this market is not going to continue to go higher, so you have to look at every dip as a potential buying opportunity. I have no interest in shorting this market, but if the Bank of Japan were to change its overall attitude about interest rates, then it would change everything. Until then, it’s very unlikely that we will see the trend change anytime soon, therefore buyers continue to push this thing higher.

USD/JPY Price Forecast Video for 22.06.22

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