Yahoo Finance USD/JPY Price Forecast – The US Dollar Continues to Slump Against the Japanese Yen
US Dollar vs Japanese Yen Technical Analysis
The US dollar initially rallied against the Japanese yen during trading on Wednesday but has also given back quite a bit of the gain near the ¥127 level. At this point, it looks as if the market is ready to slump further, which makes a certain amount of sense due to the fact that it had been so parabolic previously. However, the fundamentals simply do not favor a reversal of the trend, just simply a pullback.
With the yields in America pulling back a bit, it makes a certain amount of sense that the US dollar would lose some of its momentum against the Japanese yen. Remember, the Bank of Japan is actively fighting interest rate markets, putting downward pressure on the Japanese yen. However, if the US bond markets have seen a spike in yields as of late, and therefore one would have to think that it is probably only a matter of time before we had to pull back. As yields have done so, it has seen a little bit of a softening effect on the greenback.
The 50 Day EMA sits just below, and it more likely than not will attract a certain amount of technical support. Underneath there, we have the ¥125 level, an area that is both psychologically and structurally important. As long as we stay above there, we are still in a very bullish market. Regardless, I do think the pullbacks will eventually find buyers to jump into the market and push to the upside. I have no interest in shorting this market and look at these drops as a potential entry point.
USD/JPY Price Forecast Video 26.05.22
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This article was originally posted on FX Empire
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