USD/JPY Weekly Price Forecast – US Dollar Continues to Power Higher Against the Japanese Yen

US Dollar vs Japanese Yen Weekly Technical Analysis

The candlestick for the trading week has been very bullish for the US dollar against the Japanese yen, and this is especially true if you consider the fact that the last couple of candlesticks has been shooting stars. In this environment, you would anticipate that there would be a pullback, but we have yet to see that materialize. If we were to break above the highs from the previous week, that would be a very bullish sign as it would be the market completely ignoring resistance and powering through it.

If we do turn around a break down below the lows of the previous two weeks, then a correction could start to happen. The ¥135 level would be busted, and then we would be looking to reach the ¥132.50 level. After that, we could see a move to the 130 and level, but quite frankly I think anything that remotely resembles a significant dip will be thought of as a buying opportunity, especially as the Bank of Japan continues to buy as many bonds as possible to drive yields down. If that is going to continue to be the case, then I believe that the Japanese yen will continue to get picked on.

Obviously, it’s almost impossible to short this market and would be thought of as foolish if you tried. While parabolic markets like this cannot go on forever, the reality is that timing the turnaround is very difficult to do and requires quite a bit of luck to achieve. Because of this, I’m looking for dips that I can start going wrong again.

USD/JPY Price Forecast Video 11.07.22

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