US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied a bit during the trading session on Friday as it looks like people are willing to jump into the market to follow the trend. The US dollar is by far the strongest currency in the world right now, with perhaps the exception of the Russian ruble and the Brazilian real. Looking at this chart, you can see that we have been in a very strong uptrend for quite some time, so the fact that we found a bit of support near the ¥127.50 level should not be a huge surprise as the market has seen it as support previously.
If we were to break down below the ¥127.50 level, then the market could go down to the 50 Day EMA, which sits just above the ¥125 level. The ¥125 level is a large, round, psychologically significant figure, and therefore I think there is a certain amount of interest in that area. The interest rate differential between the United States and Japan continues to favor the greenback, so over the longer term we should see buyers coming back into pick this market up every occasion they get.
The market breaking down below the ¥125 level could open up massive selling, but that very unlikely to be the case. The market will continue to be a significant uptrend just waiting to happen, but try to find some type of value along the way is probably going to be the best way going forward. The trend has been very strong, so selling would only happen after some type of major fundamental shift.
USD/JPY Price Forecast Video 16.05.22
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This article was originally posted on FX Empire
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