USD/JPY Forecast – US Dollar Continues to Recover Against Yen
USD/JPY Forecast Video for 01.12.22
US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied a bit during the trading session on Wednesday, as we continue to see a lot of consolidation against the Japanese yen. Of further interest is the fact that the ¥137.50 level underneath has offered support a couple of times, as well as offered resistance in the past. There is a trendline that we are butting up against, and of course we have the Non-Farm Payroll numbers coming out on Friday which should continue to show wage inflation. If that’s going to be the case, then we could see that US dollar go higher.
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At this juncture, it seems like the market is going to continue to see a lot of volatility, and of course traders in places like Wall Street believe that the Federal Reserve is going to bail them out. That’s not going to be the case, as long as inflation is extraordinarily high in the United States, and it is most certainly extraordinarily high.
On the other side of the equation, you have the Bank of Japan and its seemingly endless quest to keep interest rates lower. If that’s going to be the case over there, then you have a situation where they continue to “print yen” in unlimited amounts, offering the ability for the Japanese yen to continue to drop overall. I think this is a market that will be very noisy, but more than anything else you would have to look at the longer term uptrend and realize that even though we have had a significant selloff as of late, it has not changed the trend one bed.
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