USD/JPY Weekly Forecast – US Dollar Continues to Plow Higher

USD/JPY Forecast Video for 26.06.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has continued to rally during the week, as the ¥143.50 level has been shot through. At this point, the market is likely to continue to see a lot of traders coming back into the picture in order to take advantage of the interest rate differential, and of course, the fact that the Bank of Japan continues to see a lot of reasons to keep monetary policy loose, and therefore it continues to work against the value of the Japanese yen overall. Underneath, even if we were to break down below the ¥142.50 level, there is the previous bullish flag that comes into the picture as support, and then the ¥138 level, which was the top of an ascending triangle.

Ultimately, it looks as if we are going to try to get to the ¥148 level at the very least, perhaps even the ¥150 level. All things being equal, that is the “measured move” of the bullish flag and the ascending triangle that I have marked on the chart. All things being equal, I do think that we are going much higher, therefore this is a market that cannot be taken to the short side. If we get a pullback, that should be a nice buying opportunity, as we continue to go much higher. In fact, this is all about the Japanese yen and probably a lot less to do with the US dollar. The recent conversations from Jerome Powell have suggested that we were going to see more monetary tightening, so therefore I think this is a freight train that continues to go much higher and therefore I have no interest whatsoever in shorting.

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