Yahoo Finance USD/JPY Forecast – US Dollar Bounces Slightly Against the Japanese Yen
USD/JPY Forecast Video for 07.11.23
US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied a bit during the early hours on Monday, as we continue to see a lot of volatility in this market. Last week was a brutal candlestick, as we did form a shooting star for the week. That being said, this is still a very bullish market due to the interest rate differential, so I’m not necessarily looking to short this market. However, when I see a weekly candlestick like that, it does tell me that it’s possible that we see some type of pullback. If that were the case, then I think the 50-Day EMA comes into the picture to offer support, right along with the ¥147.80 level.
On the other hand, if we were determined to take out the ¥150 level, then we are looking for a move to the ¥151.75 level, which was the top of the candlestick for last week. If we were to take that out to the upside, that would be a very strong sign, allowing the US dollar to overwhelm the Japanese yen yet again. Quite frankly, I do think that happens given enough time, but the question now is not so much whether or not it can happen, but whether or not you are buying dollars at a lower price, or if you are willing to jump in and buy them here. I would be cautiously optimistic at this point, but I’m not necessarily looking to throw a ton of money into the market at the moment, because if nothing else, it may just have to work off some of the excess froth of the move higher.
It’s not until we break down below the ¥147.80 level that I would be a bit concerned, so with that in mind I like the idea of finding value and taking advantage of it, much like a lot of traders have done early Monday morning. Until the Bank of Japan changes its overall tune or the bond market in the United States does, it’s very difficult to see how this trend changes in the present environment when you get paid to hold onto the currency pair.
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This article was originally posted on FX Empire
