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

USD/JPY Forecast Video for 28.08.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has gone back and forth during the course of the trading week against the Japanese yen, as it looks like we are trying to figure out where we are going to go longer term. At this point, I think it’s very possible that we still have the likelihood of a move toward the ¥150 level, but it may take some time to get there. Alternatively, I think we have to look at this through the prism of finding value on dips, and recognize that there is going to be a lot of noise overall. Because of this, we have to be cautious about position sizing because it is going to be noisy, but I certainly have no interest in shorting this market.

Looking ahead, I think that the market will probably start to see more liquidity affect things as traders come back from holiday, and then of course he is going to be a major influence on the bond markets as well. As long as the Bank of Japan continues to see the need to do yield curve control, I just don’t see how the Japanese yen strengthens for any significant amount of time. I also recognize that the US dollar remains very bullish from a standpoint of interest rates, especially against this particular currency. If we start to see a little bit of a run to safety, it’s possible that we see a move back to the yen, but at the end of the day the markets always seem to end up with the US dollar on their mind in those times. With this, I think it’s probably only a matter of time before we go much higher, with ¥150 being the initial target.

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