USD/JPY Weekly Forecast – US Dollar Continues to Break Out Against the Japanese Yen

USD/JPY Forecast Video for 11.09.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has rallied a bit during the course of the week, breaking above the top of the neutral candlestick from the previous week. Because of this, I think we are getting ready to make that move to ¥150 again, and then perhaps even the highs which are closer to the ¥152.25 region. Regardless, at this point, I like the idea of taking advantage of pullbacks that present themselves as buying opportunities. The ¥142.50 level underneath should be a major support level.

On the upside, if we do break above the recent highs and the ¥152.25 level, then it opens up the possibility of a move to the ¥155 level. We are most certainly in an uptrend, and the interest rate differential between the United States and Japan should continue to push this pair higher over the longer term. In fact, I don’t necessarily have a scenario in which I’m willing to short this pair, and I think that every time you see this market drop, you should be looking for some type of entry to get long. This will remain the same as long as the Bank of Japan continues its ultra-loose monetary policy, and it does suggest that the Japanese yen will continue to be a bit of a punching bag against almost everything.

On the other side of this equation, you have the Federal Reserve that is very tight with its monetary policy, and is likely to remain so. Because of this, you get paid to hang onto this currency pair, and I think that is probably one of the main drivers. With this, I like the idea of hanging on and continuing to not only collect swap, but price appreciation as well.

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