US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied against the Japanese yen during the trading session on Monday to break back above the ¥127.50 level. By doing so, it suggests that the market is ready to go higher, although there is a lot of noise between here and the previous eyes. Because of this, you will have to endure a bit of noisy behavior but given enough time it is likely that the overall soft nature of the Japanese yen will continue to allow this market to arise. Furthermore, you have the US dollar that is strengthening to begin some with everything anyway, so given enough time we should go much higher.
The 50 Day EMA is sitting underneath and should offer a bit of dynamic support, so pay attention to that as well. After that, then the ¥125 comes into the picture, which was the previous resistance. As long as we can stay above that level, I think that there will be plenty of interest in buying this pair. Unless the Bank of Japan changes its stance, it’s difficult to imagine a scenario where the Japanese yen strengthens for a substantial amount of time. Because of this, I think it is probably a situation where there will be plenty of people “buying the dip”, as there seems to be plenty of momentum in the long term.
Keep in mind that the market had been rather parabolic previously, so it does make a certain amount of sense that we had to pull back. With that in mind, I think this is a market that is unidirectional.
USD/JPY Price Forecast Video 31.05.22
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This article was originally posted on FX Empire
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