USD/JPY Forecast Video for 13.03.23
US Dollar vs Japanese Yen Technical Analysis
The US dollar initially tried to rally during the trading session on Friday but gave back gains as the Non-Farm Payroll announcement came out. The ¥137.50 level is an area where we have seen a lot of resistance in the past, so it does make a certain amount of sense that we would see it now. That being said, the market still has a lot of different things moving it at the same time. The US dollar of course has been stronger against the Japanese and for the longer term, as the Bank of Japan has been finding rising interest rates in that country. As long that’s going to be the case, I am a bit suspicious of the Japanese yen, and I think that it is a scenario where eventually the Japanese yen loses strength against most currencies, much like it did last year.
Speaking of last year, it’s probably worth noting that the market bounce from the 50% Fibonacci level was little, forming a “double bottom” at that level as well. The pullback was based upon the entire run higher from last year, so it does make a lot of sense that traders would be interested. Since then, we seen a pretty strong run to the upside, so this pullback probably helps traders get involved that want to get long yet again. The 50-Day EMA has just broken above the 200-Day EMA, kicking off the so-called “golden cross”, so by most accounts, this market is now fighting to be in an uptrend. If we can break above the ¥138 level, which is the top of that small area of resistance air ¥137.50, then I think we probably go looking to the ¥140 level rather quickly.
I’m looking at any dip at this point in time as a potential buying opportunity and will look for supportive looking candlesticks on the daily chart in order to get long. At this point, I don’t have any interest whatsoever in trying to short this market, I think that the Japanese yen is going to have long-term structural problems, and this has been brought to the forefront as we now have the Federal Reserve looking more likely to increase rates further than people thought.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/usd-jpy-forecast-us-dollar-150302295.html