USD/JPY Price Forecast – US Dollar Recovers

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially dipped against the Japanese yen during the trading session on Thursday, reaching down toward the crucial ¥145 level. It appears that the level is going to hold, and therefore it does make certain amount of sense that we would see this market battle same continue the overall uptrend. After all, the Bank of Japan continues to assert yield curve control, buying unlimited bonds. This is the same thing as flooding the market with your currency, so of course it loses value.

I do believe that eventually we will see the market reach the ¥150 level again, and the Thursday candlestick is a good sign that we are certainly looking at a lot of people out there willing to do whatever it takes. Even if we were to break down below the ¥145 level, it’s very likely that we have a scenario where the 50-Day EMA underneath air will offer enough support to have people interested as well. Ultimately, the Japanese yen remains toxic, so it’s difficult to imagine a scenario where you would want to get overly bullish at this point. I do believe that this remains a “buy on the dip” type of scenario, with the most likely outcome being another standoff near the ¥150 level.

I do believe that we break above the ¥150 level again, and that the Bank of Japan can only hope that the Federal Reserve sees the need to change its monetary policy. At this point, they are stuck between a rock and a hard place and the market knows this.

USD/JPY Price Forecast Video for 28.10.22

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