USD/JPY Weekly Price Forecast – US Dollar Continues to See Noisy Behavior

USD/JPY Forecast Video for 07.08.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar continues to show a lot of volatility, and the jobs report coming out on Friday weaker than expected will continue to cause more noise. That being said, the interest rate differential between the two could continue to drive this pair higher. In fact, that is exactly what I expect to see.

The 142.50 level above should be slightly resistant, but in the end, I don’t see why we couldn’t break above there. A short-term pullback makes a lot of sense, and that should be a buying opportunity going forward. The “buy on the dips” attitude can continue, and I expect it to. Also, you get paid to hold onto it. The market has been rising for some time, and the momentum continues to see upward pressure more than anything else.

This continues to be a market of noise, but there are a lot of opportunities out there. I like collecting swaps, and the 138 level underneath is going to be a major support level. This is an area that the sellers and buyers have been active at. The shape of the candle is somewhat lackluster, but the previous couple of weeks have been bullish, so this means that the markets are going to continue to see a lot of support in the short term as well.

A break above the top of the candlestick would be a very bullish sign, and could have this market chasing the 145 level, followed by the 147.50 level. I think we get there eventually but there is a lot of choppiness ahead in this pair.

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