US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied a bit during the trading session on Friday as we continue to threaten the ¥145 level. Ultimately, this is a market that will continue to be very noisy, but I think it still favors the upside. After all, the market is more likely than not going to continue to favor the US dollar as the interest rate situation continues to diverge dramatically. That being said, short-term pullbacks continue to be buying opportunities, especially near the ¥142.50 level.
The ¥140 level is an area that’s worth paying attention to as well, as the 50-Day EMA comes into the picture. Ultimately, this is a situation where you continue to see a lot of volatility, but I think that the ¥140 level should be a bit of a “floor in the market” as there is a lot of confluence. In this scenario, I anticipate that we will see a lot of interest. Ultimately, we are very much in an uptrend, and I just don’t see how that changes. This is a market that I think will continue to be noisy, but at the end of the day, the main deterrent at this point would be the fact that the Bank of Japan intervened about a week ago.
That being said, the Bank of Japan is more worried about the rate of change than a specific number, as central bank interventions rarely work for the longer term and are or less just meant to calm marketplaces down a bit when they get far out of control. We had recently seen that, but as long as the Bank of Japan is willing to buy unlimited bonds, the trajectory is still going to be higher.
USD/JPY Price Forecast Video for 03.10.22
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