USD/JPY Price Forecast – US Dollar Continues to Threaten a Bigger Breakout

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gone back and forth against the Japanese yen during the trading session on Monday, as we are threatening the ¥135 level yet again. Ultimately, this is a market that is trying to build up enough pressure to take off to the outside, and if the market were to break above the recent highs, at that point it’s likely that we could see the market look to reach the ¥137.50 area.

If the market was the pullback, the ¥132.50 level more likely than not should offer a bit of support, right along with the ¥130 level. The 50 Day EMA is sitting just below the ¥130 level and should offer a bit of dynamic support as well. Because of this, I think it is only a matter of time before buyers stepped back in to pick up value. The US dollar is by far the strongest currency out of the majors right now, and at the same time, the Bank of Japan is doing everything it can to fight interest rates rising.

I would anticipate a certain amount of volatility, but the Japanese yen is getting hammered against almost everything. I do not see that changing anytime soon as the Bank of Japan has just reiterated its desire to fight interest rates, so this should continue to be a trend. That being said, this market will go straight up in the air forever, so look at the occasional pullback as a potential value play. Picking up “cheap US dollars” should continue to be the monitor of most traders, especially if we continue to see a lot of risk aversion out there.

USD/JPY Price Forecast Video 21.06.22

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