Advertisement
Advertisement

USD/JPY Weekly Forecast – US Dollar Rallies Against Yen From Crucial Level

By:
Christopher Lewis
Updated: Apr 1, 2023, 20:01 UTC

The US dollar has rallied significantly during the trading week to break above the 50-Week EMA.

US Dollar, FX Empire

In this article:

USD/JPY Forecast Video for 03.04.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has rallied significantly during the trading week to break above the 50-Week EMA, breaking above the 133 and level. The market continues to see the 50% Fibonacci retracement level underneath add support, and therefore it makes quite a bit of sense that we would see the market trying to take off from here. I do believe that the Japanese yield curve control is still going to be the big story, so as long as we can stay above the previous swing low, then I believe that the market should continue to go higher.

The ¥135 level is your next target, but it’s very difficult to get there as the bond markets are all over the place. The size of the candlestick is of course rather impressive, so it does suggest that we will probably have a little bit of follow-through given enough time. That being said, you will probably have to drop down to a lower timeframe in order to find buying opportunities, but I do think that given enough time we will probably see plenty of buyers.

Underneath, the ¥128.50 level is an area that should offer massive support, and breaking down below there then puts the ¥127.50 level as the absolute bottom. Anything underneath there opens up the possibility of a major drop. It would almost certainly have to do with the US dollar losing strength across the board, probably not just the Japanese yen strengthening. With this being the case, I think it’s probably a scenario where you need to be very cautious on selling, but if and when we do break down, it could be disastrous. As things stand right now, I still believe it’s more of a grind to the upside than anything else.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement