USD/JPY Price Forecast – US Dollar Reaches ¥145

US Dollar vs Japanese Yen Technical Analysis

The US dollar has shot straight up in the air against the Japanese yen again during the day on Wednesday, as we are reaching the ¥145 level. At this point, there’s not much to stop this market from rising even further, but it is a bit overstretched, to say the least. Because of this, the market is likely to continue seeing a lot of volatility but also risks seeing a significant pullback. At this point, you cannot chase the trade higher, but you certainly don’t want to try to short this market. In other words, this will be about waiting for an opportunity.

The Bank of Japan continues to do everything it can to fight rising interest rates, and that essentially means that they are printing currency. Because of this, the market is more likely than not going to continue selling the Japanese yen, and with the Federal Reserve tightening monetary policy, this sets up a bit of a “perfect trade.”

The ¥140 level should be massive support, and that’s assuming that we can even get there. Regardless, this movie is overdone, so if you are buying it all the way up here, you are more likely than not going to have serious losses. The market will continue to be very noisy and of course reactive to the occasional headline, but right now it appears to me that the situation looks rather bleak for the Japanese yen, and we will more likely than not eventually break even higher than this level. It is going to take the Bank of Japan finally giving up on suppressing rates to make this pair turnaround. The other possibility of course is that the Federal Reserve chooses to loosen its monetary policy.

USD/JPY Price Forecast Video for 08.09.22

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