USD/JPY Price Forecast – US Dollar Continues to Grind Against the Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has initially fallen on Wednesday but turned around to show signs of life again as we continue to see the Japanese yen struggle. Furthermore, the US dollar seems to be picking up a bit of momentum across the board today, as the fears of the Federal Reserve not pivoting continue to enter the marketplace. This should not be a surprise, because quite frankly several Federal Reserve speakers have reiterated over the last couple of days that they are in fact going to remain tight. However, you’re talking about a generation of traders that have always had cheap and easy money to bail them out.

The Bank of Japan intervened just above the ¥145 level, so the market is approaching this level very cautiously. That’s not uncommon, and quite frankly is exactly what the central bank wants. They don’t necessarily believe that they can change the trend but slowing down some of the speculative bubbles is going to be their main goal. It seems as if they have in fact accomplished it.

On pullbacks, I’m very interested in buying this pair, especially if we can get near the 142.50 again level, or even the ¥140 level. As long as the Bank of Japan continues to buy unlimited bonds, which is tantamount to printing unlimited currency, it does make sense that we see the US dollar climbed against the Japanese yen. With this, I remain bullish but I also recognize that the ¥145 level is going to be difficult to get above. Short-term traders must love this market right now.

USD/JPY Price Forecast Video for 06.10.22

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