USD/JPY Weekly Forecast – US Dollar Gives Up Gains for the Week

USD/JPY Forecast Video for 24.04.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar initially rallied during the course of the trading week but gave back gains rather quickly as we continue to see a lot of choppy behavior in multiple currency pairs. The market is still trying to determine whether or not the US dollar is going to stay strong, or if it is going to lose some of its grip. The Japanese Yen of course is a currency that is dealing with the yield curve control coming out of the Bank of Japan, as they continue to look at the market through the prism of trying to find interest rates rising.

In other words, this pair is somewhat manipulated, but the reality is that the US dollar will be the big driver, due to the fact that we already know that the Bank of Japan is not going to allow the 10 year JGB to offer more than 50 basis points. Anytime we get close to that level, the Bank of Japan will print currency in order to keep things calm.

On the other hand, if we were to take off above the candlestick for the week, then it opens up a move to the ¥137.50 level, which is an area where we sold off from. If we break above there, then it’s likely that we could go looking toward much higher levels. On the other hand, if we break down below the bottom of this candlestick then we could go looking toward the 50-Week EMA, or perhaps even the ¥130 level underneath as the volatility continues to pick up.

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