Yahoo Finance USD/JPY Weekly Price Forecast – US Dollar Continues to Search for Support
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar has pulled back a bit during the trading week, but quite frankly this is a market that is extraordinarily bullish, and you need to look at it through that prism. That being said, we had been so overdone that our pullback was not only expected but necessary from a structural standpoint. The ¥125 level underneath should be supported as well, as it had previously been so resistant. Regardless, I don’t see a scenario in which you should be selling this pair, even though it is obviously overdone. Ultimately, I think this is a market that is a “buy on the dip” type of situation, but we have been so bullish that it may take some time to finally have people willing to pay this price.
On the upside, the ¥130 level is an area that more likely than not will attract a lot of attention as well, so I do believe that it is probably only a matter of time before you would see a bit of profit-taking in that area. When you see a massive move like this, you typically either need to see some type of pullback or at least go sideways for a while to work off some of the excess fraud. Because of this, I think it is more likely than not going to be a situation where we have a bit of a hesitation coming, but the question now is whether or not we will bounce enough to get involved?
USD/JPY Price Forecast Video 30.05.22
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This article was originally posted on FX Empire
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