USD/JPY Price Forecast – US Dollar Continues to Rally

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied during the trading session on Monday, as it looks like we need to continue to be bullish of this market. After all, the market has seen the Bank of Japan continue to stick to the bond purchase program, lowering interest rates in that country. This is essentially the same thing as printing currency, so it does make quite a bit of sense that we would continue to see the Japanese yen get crushed.

Ultimately, this is a market that I think given enough time should continue to see the ¥150 level targeted, and then broken yet again. I like the idea of buying dips due to this, mainly due to the fact that the market continues to see the US dollar strengthened due to the Federal Reserve and its tight monetary policy.

On Wednesday, we have a scenario where people are going to be looking at the Federal Reserve tightening the situation up monetarily speaking, and with the Wednesday session featuring the monetary policy statement and of course the interest-rate decision itself. All eyes are on the Fed on Wednesday, and I think a lot of people out there were starting to think that perhaps the Federal Reserve will slow down like the Canadians and the Australians have, but there’s no sign of that happening.

Quite frankly, I think this week could be very dollar positive, as the Federal Reserve has reiterated multiple times that it is here to fight inflation, not boost Wall Street. Adding more credence to that idea is the fact that Federal Reserve governors are no longer allowed to day trade, so they aren’t bilking the system anymore.

USD/JPY Price Forecast Video for 01.11.22

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