USD/JPY Weekly Forecast – US Dollar Tests Major Trend Line

USD/JPY Forecast Video for 28.11.22

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has gone back and forth during the course of the trading week, testing a major trend line. It’s interesting that we could not break down below it, and it’s a lot to try to read the action of Thursday and Friday, due to the fact that it was Thanksgiving in the United States on Thursday, and Friday is typically a day that most people don’t go back to work. It is because of this that the somewhat neutral candlestick tells me exactly what is going through the minds of the market right now.

On one hand, if we can take out the top of the candlestick, that would be a very bullish sign. That would involve taking out the ¥142.50 level. On the other hand, if we were to break down below the ¥137.50 level, it will almost certainly fall to the ¥135 level, and anything below there would be below the 200-Day EMA on the daily chart, sending a lot of selling pressure into this market.

Obviously, this is a market that has been overbought for a while, so a lot of the shaky behavior that we had seen recently is actually good for this market, because people became far too complacent. In that scenario, we may have shaken out all of the “weak hands”, and therefore we will have to see what the bigger money traders do. Keep in mind that this Friday features the jobs report coming out of the United States, which will almost certainly have an influence on what happens next, as the next data point is going to be all about the Federal Reserve monetary policy statement in December.

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