USD/JPY Weekly Price Forecast – US Dollar Continues to Crush The Yen

US Dollar vs Japanese Yen Weekly Technical Analysis

The dollar yen has gone straight up in the air this week, although not without volatility. We had the Bank of Japan meeting on Friday morning, which shocked the market because they did not do anything to knock the value of the yen back up as the yen continues to mount down, and actually stated that the sell off of the yen didn’t seem to be having any material impact on the economy.

It’s quite shocking really, but at this point, we are just continuing the overall uptrend that we have been in. And when you look at it, this is nothing new. It’s just that we are a little stretched, but at this juncture, I would anticipate that any pullback that comes along, people would be more than willing to jump in and pick up value on dips.

The ¥155 level should be a significant support level. The question now is where do we go? Well, I had a target of 157. I think we have further to go. I think we have 160 again as a very real possibility in this market. You will have to drill down to shorter timeframes in order to get entries. But clearly there’s only one direction at this point and it is higher.

With this, I think you continue to see a lot of upward pressure on the dollar anyway due to interest rates. So, I think you’ve got a situation where it’s a bit of a perfect scenario for the overall uptrend to continue going higher over the longer term. This doesn’t mean that the market won’t pull back, just that those are buying opportunities.

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