USD/JPY Weekly Price Forecast – The US Dollar Has Fallen Into Support
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar has broken down during the course of the trading week, piercing the ¥132.50 level. However, we have turned around to show signs of life again, bouncing enough to form a bit of a hammer. What I would also point out is that the wick on the weekly candlestick is higher than the one before it, suggesting that there are more buyers willing to jump in and push the market higher.
Regardless, this is a market that I think will be difficult to hang onto, simply due to the fact that the market is going to continue to see a lot of noise due to the bond markets. After all, this had previously been all about the idea of interest rates in America rising, while the Bank of Japan has been buying unlimited bonds to keep interest rates low, that’s essentially the same thing as printing unlimited currency.
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On the other hand, the Federal Reserve has been rather tight with its monetary policy, so this is set up a “perfect setup” for this market to go higher. The ¥130 level underneath should offer a significant amount of support, and therefore I think it’s likely that we will continue to see buyers coming into this market. Longer-term, we will more likely than not go looking to the ¥140 level above.
At this point, the market is likely to see a lot of back-and-forth as we are overstretched, so we may have to digest all of these major gains. Ultimately, if we were to turn out a breakdown below the ¥127.50 level, then I would consider this to be a trend that has changed.
USD/JPY Price Forecast Video 15.08.22
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