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USD/JPY Price Forecast – The US dollar Continues to Consolidate Against the Japanese Yen

Christopher Lewis
·2-min read

US Dollar vs Japanese Yen Technical Analysis

The US dollar has stabilized a bit during the trading session on Friday as we continue to trade just below the 127.50 again level. Underneath current trading, we have the 50 Day EMA which could come into the picture as well. With that being the case, is very likely that we will continue to see a lot of buyers in this area, trying to pick up the market. After all, we have been in an uptrend for quite some time, so a pullback would make a certain amount of sense, but it does not necessarily foretell a major trend change.

The Bank of Japan continues to work against the rising interest rate situation, therefore they are buying everything they can in the bond market. This is tantamount to quantitative easing, and that makes the Japanese yen especially vulnerable as it is one of the few central banks in the world doing this at the moment. Because of this, the Japanese yen will continue to suffer at the hands of the market, but no trade runs forever in one direction.

At this point, I will take my time and look for some type of supportive candle to get long of the market again. Underneath current trading, we could see the ¥125 level come into the picture, which is an area that previously had been resistant, so it would make sense that support shows up in that general vicinity as well. With this being the case, I like finding value in a market that is so obviously bullish. Unless the Bank of Japan changes its overall tune, I just don’t see how this market turns around for a longer-term selloff.

USD/JPY Price Forecast Video 30.05.22

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This article was originally posted on FX Empire

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