USD/JPY Weekly Price Forecast – The US Dollar Pulls Back Against the Yen

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has fallen significantly during the week to reach the ¥127.50 level where we found a little bit of support. This market has been extraordinarily parabolic for some time, so it should not be a huge surprise to see that we pulled back a bit. Quite frankly, I would anticipate a bit more and would love to see this pair drop to the ¥125 level, as it is a little bit more palatable to buy the market in that area. The market has been overdone for a while, but the fundamentals still line up for a bigger move to the upside.

The Bank of Japan has been fighting interest rates for a while now, thereby printing unlimited yen. This has driven the value of the yen down quite drastically, as shown in the chart. However, you eventually will see a significant pullback after these types of moves, and we may be on the precipice of that. I will look at this as a potential buying opportunity, not something that I would be short of. After all, this type of move does not happen in a vacuum, nor does it happen randomly.

There is a reason why people are selling the yen, but you do not want to be too piggish with a trade, so if you were one of the people who got involved 500 points lower, taking a bit of profit would not be a bad thing. Imagine that situation if you are trading millions of dollars, you would obviously want to protect those gains. By doing so, traders will sell this off, but I do think it is only a matter of time before we can find value.

USD/JPY Price Forecast Video 23.05.22

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE:

• U.S. concerned about possible restrictions faced by U.N. rights chief in China

• M&C Saatchi’s top investor backs out of race to buy UK ad group

• Oil edges up as supply risks counter economic growth worries

• S&P 500 tumbles, on verge of confirming bear market

• E-mini S&P 500 Index (ES) Futures Technical Analysis – Benchmark Enters Bear Market Territory

• Pentagon sees no indication of Russia using lasers in Ukraine