USD/JPY Weekly Forecast – US Dollar Bounces Against the Japanese Yen After Initial Plunge

USD/JPY Forecast Video for 11.12.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has broken down significantly down during the course of the week, reaching down to the 50-Week EMA, and then turning back around to show signs of life. A lot of this came down to the idea that the Bank of Japan may or may not normalize interest rates, and that of course is something that a lot of people will pay close attention to. With that being the case, I think if we can break back above the ¥145 level, then it’s possible that the market could go look into the ¥149.80 level. After that, we could be looking at the ¥150 level.

If we were to break down below the bottom of the candlestick, the market is likely to continue to go much lower, perhaps reaching down to the ¥140 level. The Bank of Japan continues to be in focus as well, as the possibility of a normalized rate is starting to enter the psyche of the market. That being said, the market is very unlikely to continue to see downward pressure until that actually comes to bear. After all, we have heard this rumor more than once, so it’ll be interesting to see how the market takes this out.

At this point, the market is going to have to pay close attention to the fact that we are going into the holiday season, and therefore liquidity will disappear. If that’s going to be the case, we could get wild moves, and therefore you need to be very cautious with your position sizing. Quite frankly, the rest the year could be nothing but noise and choppiness going forward.

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