US Dollar vs Japanese Yen Technical Analysis
The US dollar initially tried to rally during the trading session on Friday but has seen a little bit of a pullback. At this point, the market still looks very elevated, and therefore I think is probably only a matter of time before buyers come in and pick up any dips. After all, finding “cheap US dollars” is the way to go in this market. The ¥127.50 level underneath should offer support as it has previously, so having said that I think that is an area that you need to pay close attention to.
The Bank of Japan continues to fight interest rates in that country, meaning that they are essentially “printing yen.” That being said, the Federal Reserve is likely to continue its hawkish stance, so there is no real reason to think that the trend is going to change anytime soon. With that being said, I think there is no way to sell this pair.
It would literally take a change in attitude from both the Bank of Japan and the Federal Reserve to turn this market around. Eventually, we will get that, but neither is anywhere near doing that. Ultimately, I think signs of exhaustion will probably continue to be worth paying attention to because that gives you a bit of a “heads up” as to when we could see value based upon supportive candlesticks.
The market will continue to be very noisy and of course, you do have to pay a little bit of attention to risk appetite, as this pair is somewhat influenced by it. Nonetheless, this is essentially a one-way trade, as most markets are involving the US dollar.
USD/JPY Price Forecast Video 09.05.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/us-dollar-continues-elevate-against-143250351.html