USD/JPY Weekly Forecast – US Dollar Continues to Climb Against the Japanese Yen
USD/JPY Forecast Video for 02.10.23
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar has rallied significantly during the course of the trading week, reaching the ¥150 level. However, we did not break above there, and we made a short-term pullback in order to build up the necessary momentum. Regardless, it looks like the market is trying to get to the ¥152 level, which is where we pulled back from previously. Short-term pullbacks offer buying opportunities and the weekly chart certainly suggests that there is plenty of support at the ¥147.80 level, followed by the ¥145 level, and then again at the ¥142.50 level.
In general, this is a situation where we continue to see a lot of noisy behavior, but the interest rate differential between the 2 economies certainly offers an upward trajectory. Recently, there has been some mumbling about the Bank of Japan possibly stepping in and trying to do something about this, but they had an interest rate decision last week, and failed to do anything, or even say anything. In other words, they know they cannot do anything about this, as the debt level in Japan is so high that higher rates will crush the economy.
Most people focus on the debt level in the United States, but Japan has been a bug looking for a windshield for quite some time. But that being the case, I think that we continue to go higher, but I’m looking for some type of value to get involved. I don’t necessarily want to chase all the way up at this level. That being said, even if you told me that the pair was going to fall next week, I’m not shorting it anytime soon.
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