USD/JPY Price Forecast – US Dollar Continues to Pressure to the Upside

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially pulled back against the Japanese yen on Wednesday but turned around to show signs of life again. Ultimately, it looks as if the US dollar is going to try to break above the ¥140 level, an area that I think opens up a huge move to the upside. That being said, the market is likely to continue seeing the Bank of Japan’s influence in the market more than anything else. After all, they are doing everything they can to keep interest rates down, which is essentially printing currency.

On the other side of the Pacific Ocean, we have the Federal Reserve tightening monetary policy, and trying to convince the market that they are going to be very aggressive. With that being the case, the market is likely to see plenty of buyers every time it dips, and of course, you cannot avoid the fact that we have just broken out of a bullish flag, and is likely that we will continue to go much higher. The 50-Day EMA sits at the ¥135 level and should show a significant amount of buying pressure to see the market remain in a nice uptrend. That being said, there is a little bit of fear of a “double top”, but that is a difficult position to take, based upon the fact that we have seen so much in the way of upward pressure.

Ultimately, this remains a “buy on the dip” situation, and not much has changed. Ultimately, this is a market that I think continues to see plenty of momentum.

USD/JPY Price Forecast Video for 01.09.22

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