USD/JPY Price Forecast – US Dollar Continues to Threaten The Same Barrier

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied slightly during the trading session on Monday, as we continue to threaten the ¥145 level. The ¥145 level has been defended by the Bank of Japan via intervention, but one would think that it is only a matter of time before the market gets above there. After all, the US dollar is strengthening against almost everything, so the Japanese yen certainly won’t be any different. This is especially true considering that the Bank of Japan is going out of its way to buy every bond it can, so this is essentially the same thing as printing money. In other words, they are flooding the markets with yen.

That being said, they are also trying to keep the currency from collapsing, so that’s something to pay close attention to as well. The 50-Day EMA is sitting at the ¥140 level and rising. That should offer a bit of a floor in the market going forward, and a bit of dynamic support as well. I like buying dips, but eventually I think we do break through and go much higher. Ultimately, that is the goal, but picking up “cheap US dollars” is probably the best thing you can do at this point.

If the Bank of Japan were to suddenly change its positioning and stop its quantitative easing, that would probably cause some type of massive turnaround, and of course the Federal Reserve stopping its monetary policy would go miles in changing the overall attitude of this market as well. At this point, I think it’s going to be a short-term trading type of environment, with a look to the upside more than anything else.

USD/JPY Price Forecast Video for 04.10.22

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