USD/JPY Price Forecast – US Dollar Continues to Reach Higher Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied just a bit after initially dipping on Tuesday, to show a continued uptrend in this market. The ¥130 level seems to be attracting a certain amount of attention, so that is something that you need to be aware of. If we can break above there, then we will probably test the highs, but it is not until we break above there that the market really takes off. I anticipate that more likely than not, we are going to see a market that is more sideways than anything else. With that in mind, it is more likely than not going to be more or less a short-term type of situation.

If we were to break down below the ¥127.50 level, then it is possible that we could drop to the 50 Day EMA, which is currently breaking above the ¥125 level. That is an area that will continue to attract a certain amount of attention due to the psychology and of course the previous resistance that we had seen there. As long as the Bank of Japan continues to fight bond yields, that means they are essentially “printing yen” and therefore it drives down the value of the currency.

At the same time, the US dollar gets a continual lift due to the hawkish behavior of the Federal Reserve. As long as that is going to be the case, it does make quite a bit of sense that we would see this market attract buyers as the Japanese yen will be shunned by most traders.

USD/JPY Price Forecast Video 18.05.22

For a look at all of today’s economic events, check out our economic calendar.