USD/JPY Weekly Forecast – US Dollar Plummets Into Support

USD/JPY Forecast Video for 17.07.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has fallen rather hard during the course of the trading week, as inflation numbers in the United States have cooled off a bit. As a result, we have seen the market really plunge against the Japanese yen, but at the same time you can also make an argument that the Bank of Japan has hinted that they will do some type of yield curve control adjustment, so therefore it’s likely that we had to get through this correction.

Looking at this chart, I think you’ve got a situation where the market memory will come back into the picture, and therefore I think you have to look at the ¥138 level with a certain amount of caution. After all, it is an area that was previously resistance, and now it looks like it could offer a bit of support. The fact that we have bounced from there is very important to pay attention to, and we can see buyers coming back into the market. However, it’s probably going to be a bit difficult to place a trade based on the weekly chart, but the daily candlestick suggests that we are ready to bounce from here. If we can take out the ¥139 level, that opens up the possibility of a move to the¥ 140 level, and so on.

On the other hand, if we do break down below the bottom of the weekly candlestick, that opens up a move down to the 50-Week EMA, which is closer to the ¥135 level, and is hugging the previous trendline from the former ascending triangle.

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