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USD/JPY Weekly Price Forecast -The US Dollar Gives Up Early Gains

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US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has initially rallied during the course of the week to break above the ¥136.50 level but has pulled back quite significantly. The candlestick for the week looks a bit like a shooting star, and it does suggest perhaps we are going to have a bit of a pullback, in what has been a significant rally. Quite frankly, momentum may end up being a bit of an issue, but the trend is most certainly still intact. With this being the case, I think you continue to buy dips every time you get an opportunity to.

On the other hand, if we were to turn around and break above the top of the shooting star for the week, then it’s possible that we could go to reach the ¥137.50 level, perhaps even to the ¥140 level. If the market were to break down below the bottom of the candlestick, then we could go looking to the bottom of the hammer from the previous week, which is closer to the ¥132.50 level.

Keep in mind that the Bank of Japan continues to fight interest rates, essentially going into quantitative easing. Ultimately, there’s no real way to short this market until we see some type of difference in the behavior of central banks. Ultimately, I think it’s only a matter of time before the buyers come back in, but we may need to be tempted by lower prices in order to get involved. All things being equal, it’s not until we break down below the ¥127.50 level that you can think about a downtrend.

USD/JPY Price Forecast Video 27.06.22

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

This article was originally posted on FX Empire


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