Yahoo Finance USD/JPY Forecast – US Dollar Pulls Back on Memorial Day
USD/JPY Forecast Video for 30.05.23
US Dollar vs Japanese Yen Technical Analysis
The US dollar initially tried to rally during the trading session on Monday but gave back gains to show signs of hesitation. By doing so, the market looks as if it is finally recognizing gravity, and it could come into the picture to show some issues. That being said, I think it’s probably only a matter of time before we see some resumption of the overall uptrend. With that being said, I think this continues to be a market that will offer plenty of opportunities, especially if we continue to see the Bank of Japan pursue its monetary policy of quantitative easing, especially as they have a 50 basis point cap on the 10-year yield. As long as that’s the case, they will have to print Japanese yen in order to buy those bonds and drive those rates down. By contrast, the Federal Reserve is expected to continue to tighten monetary policy, or at the very least keep monetary policy type going forward.
At this point, I think it is probably only a matter of time before the market reaches the ¥148 level, which is the measured move of the triangle. If we break back below the ¥138 level, then it’s possible that we could go down to the 50-Day EMA which is closer to the ¥136 level, and then, of course, the 200-Day EMA at the ¥135 level. All things being equal, I don’t think we are getting back down there and I think a lot of what we are seeing is simple profit-taking and lack of people willing to jump into the market. All things being equal, I do think it’s only a matter of time before the market goes much higher, and therefore I look at this as a “buy on the dips” opportunity just waiting to happen. In general, this is a situation where we will eventually go much higher, but it may take a little bit of a pullback to entice more buyers into this market as it has gotten a bit parabolic over the last couple of weeks.
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This article was originally posted on FX Empire
