USD/JPY Price Forecast — US Dollar Bounces Slightly

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied a bit against the Japanese yen during the trading session on Friday, as the markets continue to look at the central bank differential between the United States and Japan, recognizing that the Japanese are going to do everything they can to keep interest rates low, meaning that they are going to buy an unlimited amount of bonds, thereby printing an unlimited amount of currency.

In this environment, it’s almost impossible for the Japanese yen to strengthen anytime soon, not only against the US dollar but against almost everything else as well. Ultimately, I do think that this market eventually finds a way to get to the ¥140 level, and it’s probably worth noting that we are trying to form some type of bullish flag. Even if we do pull back from here, it’s likely that the ¥135 level offers significant support, right along with the 50-day EMA which sits just below there.

If we do break down below the 50-day EMA, then it’s possible that the market is looking to the ¥132.50 level, an area that’s been very supportive several times. Because of this, if we were to break down below that level then I would have to reconsider the entire trend outlook. That being said, I’m not overly concerned about it, and I look at dips at this point as an opportunity to pick up a little bit of value in a market that I think has clearly shown resilience.

USD/JPY Price Forecast Video for 29.08.22

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