USD/JPY Weekly Price Forecast — US Dollar Continues to Bang Around

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has gone back and forth during the course of the week as we continue to see a lot of volatility. As we try to figure out where central banks are going, it does make a certain amount of sense that people do not really know what they are going to do quite yet. That being said, we are most certainly in a bullish move, and after the extreme bullish pressure of the previous week, it’s probably not a huge surprise that we had to take a bit of a breather. Nonetheless, this is a market that I think given enough time will have to continue to look at the difference between the two central banks.

As things stand right now, the Bank of Japan continues to see the need to keep interest rates down below 0.25%, the level on 10-year notes, meaning that they are willing to “buy unlimited bonds.” This is the same thing as printing currency, so does make a certain amount of sense that the US dollar would continue to strengthen in that environment. Ultimately, I think we probably do eventually look toward the ¥140 level, but we make it a short-term pullback, for no other reason than to catch our breath.

It’s not until we break down below the ¥132.50 level that you begin to question the trend. At ¥130, then you have to question the entire situation. If the reserve suddenly becomes dovish, or if the Bank of Japan gives up on the idea of keeping rates lowered, that would be reason enough for the market to change. Until then, you still have to assume that there may be a bit of upward pressure at any given moment.

USD/JPY Price Forecast Video 29.08.22

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