USD/JPY Forecast – US Dollar Rallies Against Japanese Yen

USD/JPY Forecast Video for 23.11.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially pulled back just a bit during the trading session on Wednesday, only to turn around and explode to the outside and break above the 50-Day EMA. At this point, I think short-term pullbacks offer buying opportunities, and we are seeing that play out during the day. The ¥150 level above is a target, and if we can break above there, then it’s likely that we are looking to the ¥152 level.

Recently, there has been a lot of chatter about the Federal Reserve changing its monetary policy, and therefore traders had sold off the US dollar. Furthermore, the Bank of Japan has been whining about the idea that the yen has been falling, and they have suggested that perhaps they could step away from its loose monetary policy. That’s of course not going to happen as Japan is too far in debt to do so, but one can dream. With that being the case, a lot of traders freaked out and sold this pair, but we are starting to see a rip to the upside.

Looking at the chart, it’s obvious that the uptrend is trying to reassert itself, so I do like the idea of buying short-term pullbacks in order to pick up a bit of value, assuming that you are not already in this trait after breaking above the top of the hammer from the Tuesday session. Keep in mind that Thursday is Thanksgiving, so it does make a certain amount of sense that the markets would be quiet as it’ll take a lot of liquidity out of the picture.

With North America essentially being shut down, this will be all about European trading early in the session, which could produce a little bit of a pullback. However, as long as we can hang on to the ¥147.80 support level underneath, I just don’t see a situation where you would want to short this market. Ultimately, I think we not only reach the high again, but we may eventually break out and go looking to the ¥155 level, something that I was looking for a couple of weeks ago as well.

For a look at all of today’s economic events, check out our economic calendar.