USD/JPY Forecast Video for 06.06.23
US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied a bit during the trading session early on Monday, as the Japanese yen continues to lose value. That being said, there is a little bit of pushback, so it is worth paying close attention to the fact that the ¥140 level has caused a little bit of a headache for the bulls. However, we have sliced through here previously, so now it’s just a matter of time before we have to determine whether or not we can breakout above the recent high. If we can, then the market is more likely than not going to continue to go much higher, with a potential move all the way to the ¥148 level based on the previous ascending triangle that I have marked on the chart.
That does not mean that we get there overnight, nor should you jump in with both feet. However, I still believe in the bullish narrative here, and I think that it is probably only a matter of time before the rest of the market moves right along with it. That being said, the choppiness that comes along with this pair is something that you need to keep in mind when you put on a position. Position sizing will be crucial, but eventually you should get some type of clarity. Once we get a breakout above the recent high, then I think the next target will probably be ¥142.50.
Underneath, the top of that previous consolidation triangle sits right out the ¥138 level, so it is with paying close attention to that area as a potential value buy. I don’t even think we get there, but if we do I’d be very interested in anything that looks a lot like a supportive candlestick or a possible bounce. The 50-Day EMA is starting to race toward that area as well, so it all ties together quite nicely and I think it is probably only a matter of time before the 2 meet, but the question at this point is whether or not they be closer to the ¥138 level, or if it is later down the road.
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This article was originally posted on FX Empire