Yahoo Finance USD/JPY Price Forecast – The US Dollar Pulls Back to Find Buyers
US Dollar vs Japanese Yen Technical Analysis
The US dollar pulled back a bit during the trading session on Wednesday to test the ¥135 level, an area that of course is a large, round, psychologically significant figure. Looking at the chart, you can also see that the area has been tested multiple times for support, and therefore it’s likely that we will continue to see a lot of buyers willing to step in and test this area. The market should continue to see a lot of upward pressure over the longer term, as the US dollar continues to be like a wrecking ball against almost everything.
The Bank of Japan continues to work against the interest rates rising in Japan, and therefore they are essentially buying every bond that they can get their hands on. Ultimately, this is a market that should continue to see the Japanese Yen suffer at the hands of this action, with the Bank of Japan being one of the few major central banks doing quantitative easing. On the other hand, the Federal Reserve is extraordinarily tight with its monetary policy, so the US dollar will continue to strengthen.
At this point, even if we do break down it’s likely that the ¥132.50 level will offer support, right along with the 50 Day EMA showing up in that area. All things being equal, I think that the trend probably has supported all the way down to the ¥130 level, and therefore it’s likely that we have a potential “buy on the dips” at upcoming. On the upside, the ¥137 level for short-term resistance, but I think that the market eventually will break through it and go looking to the 140 and level.
USD/JPY Price Forecast Video 07.07.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
