US Dollar vs Japanese Yen Weekly Technical Analysis
Without a doubt, the most important currency in the world is the US dollar. It also just happens to be the most desirable one at the moment, with the Bank of Japan adding more fuel to the fire in this market by trying to keep interest rates down in that country. With the Federal Reserve looking to tighten monetary policy, there is not much to keep this market from going higher over the longer term. That being said, we are a little stretched so the most preferable way to get into this market as buying short-term pullbacks that show signs of support.
If we break down below the bottom of the candlestick for the week, I think we may go looking to the ¥127.50 level, followed by the ¥125 level. On the other hand, if we were to break above the top of the recent high, it is likely that we could go looking to the ¥135 level. I do think we get there long-term, but like with anything else, markets can only go in one direction so far. I would love to see this market have a couple of bad weeks, where I can jump in and pick up cheap dollars. The market has a lot of momentum in it, so you certainly cannot fight the trend.
It would take some type of massive turnaround by the Federal Reserve or the Bank of Japan to make this market move in the other direction. Because of this, I think longer-term traders are going to continue to favor the upside.
USD/JPY Price Forecast Video 09.05.22
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This article was originally posted on FX Empire
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