USD/JPY Weekly Forecast – US Dollar Continues to Power Higher
USD/JPY Forecast Video for 19.06.23
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar has rallied during the course of the trading week, showing signs of life yet again. The Japanese yen continues to be very soft in general, and I think that has a lot to with the idea that the Bank of Japan is going to remain very loose with its monetary policy. At this point, the market has cleared the ¥140 level, which of course is a large, round, psychologically significant figure, so there is a bit of a victory for the US dollar psychologically. If we take off to the upside, I think we fulfill a measured move of ¥148, which of course has been important in the past as previous support.
Ultimately, as long as the interest rate differential remains big enough to drive a truck through, you have the real possibility of some type of melt up. That being said, the US dollar is one of the weaker currencies out there, so I don’t know whether or not this ends up being a major mover right away, or if it lags behind some of the other quicker moving one such as the AUD/JPY pair, GBP/JPY pair, etc.
Either way, I have no interest in trying to short this market, as the Japanese yen is not a currency that I want to own any time soon. Granted, there may be the occasional dip in this pair, but it will more likely than not be looked at as a potential buying opportunity, as there has been so much upward momentum as of late, and it’s obvious that the bounce from the 50% Fibonacci level of the overall move has been a big deal. With this in mind, I remain bullish.
For a look at all of today’s economic events, check out our economic calendar.