USD/JPY Weekly Price Forecast – US Dollar Rallies Against the Japanese Yen for the Week

USD/JPY Forecast Video for 17.04.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has rallied a bit during the trading week, in what has been very choppy and noisy behavior. We are right around the 50-Week EMA, which of course is a large technical indicator that a lot of people pay close attention to. With that being the case, the market is more likely than not to see a lot of noisy behavior, but if we can take off to the upside, the market may go looking toward the ¥136.50 level. This is an area where we’ve seen some noise in the past, and therefore it does make a lot of sense that we would see it tested.

Underneath, the 50% Fibonacci level has offered a bit of support a couple of times now, so it is an area where you would expect to see the market take off again, assuming that the overall trend remains. On the other hand, if we make a move below that crucial ¥127.50 level, an area that I think defines the overall trend. You can make an argument for a little bit of negativity, due to the fact that squint you can figure out that there is a bit of a bearish flag, but that doesn’t necessarily mean that it’s going to kick off.

That being said, if we did break down below the ¥127.50 level, the 200-Week EMA is sitting just below the ¥121 level, and that would be the first target. After that, the market could drop all the way down to the ¥116 level. Ultimately, this is a market that continues to be very noisy, as is normally the case. Ultimately, this is a situation where I think you’ve got a lot of questions to be asked about the market, but ultimately, I think you also have to look at the market through the prism of the yield curve control policies coming out of Japan, and of course whether or not the US dollar is strengthening. All things being equal, this is a market that will continue to frustrate traders, but we are coiling up for some type of inertia to be released, and once it is released, things will be very explosive.

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