US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied again during the trading session on Tuesday as we are breaking above the ¥136 level yet again. This is an area that has been important, at least in the short term. We are now looking to break out to a fresh, new high, and there is nothing on this chart that I think suggests that we cannot break out to yet another high. The market has been racing higher based on the Bank of Japan doing everything it can to keep interest rates down in that country. By doing so, the market is likely to continue seeing the Japanese yen getting annihilated.
The ¥135 level should be short-term support, followed by the ¥132.50 level. After that, we have the 50 Day EMA that sits just above the ¥130 level, which is a large, round, psychologically significant figure, and an area that has been important in the past. Because of this, I think a certain amount of “market memory” in that area as well. All things being equal, that pullback would be thought of as a value trade, even though it does not necessarily look as if that’s going to happen anytime soon.
In fact, it’s not really clear to me where I would change my attitude on the trend, because quite frankly this is more about fundamentals than it is technicals. To be honest, if it were about technicals, this market would have run out of gas quite some time ago. As long as the Bank of Japan is willing to fight interest rates drastically, it’s going to weigh heavily upon the currency. On the other side of the equation, the Federal Reserve is still aggressively tightening.
USD/JPY Price Forecast Video 29.06.22
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This article was originally posted on FX Empire
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