USD/JPY Forecast – US Dollar Recovers Against Yen
USD/JPY Forecast Video for 24.11.22
US Dollar vs Japanese Yen Technical Analysis
The US dollar has pulled back a bit during the trading session on Wednesday, only to turn around and show signs of life again. Ultimately, the market looks as if it has retested the previous resistance barrier from last week, and then turned around to show signs of life again. The ¥142.50 level above offers a little bit of resistance, but I do think that we can get above there. If we can break above that level, then we could be looking at the 50-Day EMA which is sitting just above and is dropping.
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On the other hand, if we can turn around and break above that level, then we could get a huge move to the ¥145 level, perhaps even take out the big candle from the pullback. Obviously, it will take a certain amount of effort, and therefore it does make quite a bit of sense that we would see choppy behavior.
Nonetheless, the Bank of Japan continues to do what he can to keep interest rates low, and as a result has been printing unlimited yen. Granted, rates had dropped previously, but now it looks like they are turning right back around, so therefore I think it’s only a matter of time before we start to see this pair rally again.
Beyond that, we are in a big uptrend to begin with, so there’s no point in trying to fight it. It’s worth noting that we had bounced directly from the trend line underneath, so the trendline should be respected even if we do break down from here. In general, I’m bullish but I’m also aware the fact that the “easy money” has been made already.
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