USD/JPY Weekly Forecast – US Dollar Rockets Against US Dollar

USD/JPY Forecast Video for 01.05.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar initially pulled back just a bit during the course of the week, but then turned around to break above the ¥135 level. By doing so, it looks as if the market is trying to get to the ¥137.50 level, which was a major resistance barrier. That being said, the market is likely to continue to see buyers on dips, more or less based on shorter-term charts. The Japanese on Friday morning in Asia reiterated their desire to keep yield curve control going, at least for the time being, this had the Japanese yen sell off quite drastically.

It’s also worth noting that the Friday session smashed through the top of a shooting star from the previous week, so now it looks like the buyers have completely overrun everything. However, that doesn’t mean that we go straight up in the air immediately, but once we break above the ¥137.50 level, I suspect this becomes more of a “buy-and-hold” type of market, we go much higher to go looking toward the ¥150 level again.

As far as selling is concerned, I don’t have any interest in doing so, at least not until we break back down below the ¥130 level, but that looks to be very unlikely to happen anytime soon. Ultimately, this is a market that I think just formed a massive double bottom, and of course breaking above that ¥137.50 level is a confirmation of that potential signal. Either way, I would anticipate a lot of noisy behavior, but I still think that there’s a lot of upward momentum given enough time.

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