USD/JPY Price Forecast – US Dollar Pulls Back Against the Japanese Yen
US Dollar vs Japanese Yen Technical Analysis
The US dollar has pulled back a bit during the trading session on Thursday as we continue to see a lot of noisy behavior, especially as this market has been so overdone. At this point, we are trying to figure out whether or not we can take out to the upside, or if we need to pull back in order to build up the necessary momentum to break out. I suspect it’s the latter of the two, so I look at pullbacks as healthy, and an opportunity to get involved in a market that is so obviously bullish.
The ¥135 level should be supported, followed by the ¥132.50 level, and the 50 Day EMA racing toward it. At this point, I have no interest whatsoever in trying to short this market, and I think that most traders will look at pullbacks as an opportunity to get involved with a market that has been so one-way. The market continues to be very noisy, but that’s probably more or less what you can expect in most markets right now, as the world is trying to price inflation, a global slowdown, supply chain issues, and so on.
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That being said, the Bank of Japan is the major player in this market, as they continue to do everything, they can to fight rising rates in that market, essentially “printing unlimited Japanese Yen” and flooding the currency markets with it. The market continues to see a lot of volatility, but it still favors one particular direction, and there’s no reason to think that will change anytime soon.
USD/JPY Price Forecast Video 01.07.22
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