USD/JPY Weekly Forecast – US Dollar Continues to Face Volatility Against Yen

USD/JPY Forecast Video for 13.03.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has gone back and forth during the course of the trading week, showing signs of volatility all the way through. Alternatively, we seem to have a lot of resistance near the ¥137.50 level and have pulled back quite drastically from that level. Underneath, the market seems to be looking at the ¥135 level as a bit of a magnet for price. The candlestick itself looks like we are struggling a bit, so I think it’s probably a situation where we need to pay close attention to the 50-Week EMA underneath, because it could offer a bit of support. It’s also worth noting that it is in the ¥132.50 level, an area that of course has been important multiple times as well.

If we break above the top of the weekly can say, then it’s possible that we could go looking to the ¥140 level. The ¥140 level above is an area that we have seen selling pressure at previously, and is a large, round, psychologically significant figure that will attract a certain amount of attention.

All things being equal, we need to pay attention to the fact that the Bank of Japan continues its yield curve control situation, meaning that they are keeping bonds in the 10 year note down to 50 basis points or lower. Sometimes they will have to step in and print more currency to make that happen, which of course drives down the value of the yen overall. Furthermore, we have a very tight Federal Reserve that will continue to push interest rates higher, and therefore should push the price of the US dollar higher over the longer term.

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