USD/JPY Forecast – US Dollar Rallies Against Yen

USD/JPY Forecast Video for 25.04.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied a bit during the trading session on Monday, as it continues its upward pressure against the Japanese yen. Ultimately, this is a pair that is trying to determine whether the longer-term trend will continue or if the recent pullback is something a bit bigger. Keep in mind that the Bank of Japan continues its yield curve control policy, and of course, rates in the United States continue to climb. In other words, it does make quite a bit of sense that we would see upward pressure, but at the same time, it’s probably worth paying attention to the fact that the US dollar is struggling a bit against most currencies.

It does not take a lot of imagination to notice that the market is forming something along the lines of a “higher level,” or you could even make an argument for someone with a longer-term double bottom. All things being equal, this is a market that I think eventually has to make a bigger decision, and it does look like the Japanese yen is going to continue to struggle. However, it is worth noting that the market may continue to show a lot of noise more than anything else, as the entire global economy is in a bit of flux at the moment.

From a technical analysis standpoint, you can see that the 200-Day EMA sets just below, right along with the 50-Day EMA just below there. With this being the case, the market is likely to continue to see plenty of support and noisy behavior, so pullbacks will more likely than not be buying opportunities for most traders. In fact, it’s not until the market breaks down below the ¥130 level that I would be concerned about a potential bounce.

On the upside, the ¥137.50 level could very well be the target, and if we break above there, then it’s likely that this market becomes more “buy-and-hold”, and therefore it could really start to take off to the upside. I’m not expecting massive moves like we saw last year, but more of a general uptrend to form makes quite a bit of sense in this situation.

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