USD/JPY Weekly Forecast – US Dollar Stalls Against the Yen

USD/JPY Forecast Video for 06.03.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has gone back and forth during the course of the trading week, but ultimately settled on a little bit of negativity. That being said, I don’t read too much into it other than we may get a little bit of a pullback. Nonetheless, this is a situation where I think ultimately, we will see the upward momentum continued, but it can’t go on forever in a straight line. The Bank of Japan continues to see reasons to keep monetary policy very loose, trying to keep the 10 year yield below 50 basis points. By doing so, they have to print unlimited yen to fight that move, therefore we have seen the yen get hammered over the last year or so. We pulled back to the 50% Fibonacci level, and then bounced rather drastically.

I do think that eventually a pullback will offer a nice buying opportunity that you can take advantage of, but you need to be very cautious. Like the market at least form some type of supportive daily candlestick that you can take advantage of, so that you can at least get an opportunity to find some momentum in your favor. I also would not jump into the position with a huge amount of money right away, but I recognize that given enough time we could very well revisit the upside.

Expect a lot of volatility, because quite frankly nobody is willing to get overly exposed to anything at this point, and I think that may end up continuing to be the case going forward. With this, I like buying dips, but I am more than willing to be very patient about it.

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