US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied rather significantly during the trading session on Wednesday, as inflation numbers in the United States came out much hotter than anticipated. Because of this, it is much more likely that the Federal Reserve will continue to tighten, and therefore the same trade is very much in vogue. Because of this, it looks like every dip will continue to be bought. After all, the Bank of Japan continues to see reasons to buy every bond that it can, thereby driving interest rates down.
As long as the Bank of Japan continues to do quantitative easing, this is a one-way trade. I look at any type of pullback as a potential buying opportunity, and I assume that the rest of the market feels the same way. Ultimately, given enough time this is a market that should continue to go looking to reach the ¥140 level, which obviously is a large, round, psychologically significant figure.
When you pull back, the ¥135 level is an area that could offer support. That’s an area that I think we probably won’t be able to break back the loan anytime soon, due to the fact that there is so much in the way of strength. The 50 Day EMA sits at the ¥132.50 level and is continuing to rise. Because of this, I think that “dynamic support” should continue to go higher, and therefore you should be able to look at that as the “bottom of the trend.” Ultimately, this is a market that you can continue to go higher and drive even more aggressively after this print.
USD/JPY Price Forecast Video for 14.07.22
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/usd-jpy-price-forecast-us-140902864.html