US Dollar vs Japanese Yen Technical Analysis

The US dollar has pulled back significantly during the trading session on Friday but has also found buyers underneath to turn things around and show signs of life. Nonetheless, a little bit of a pullback probably isn’t a bad thing, as we are so overbought at this point. The ¥132.50 level continues to be an area of interest for short-term traders, while the ¥130 level is much more important.

We are in an uptrend for a reason. The usual “risk-on/risk-off” influence in this pair may not be felt as much as it typically is, because it has become more of a pure play of central-bank diversions as of late. With the Bank of Japan fighting interest rates rising in the 10-year bond market, they have essentially been “printing yen.” This ultra-loose monetary policy is the opposite of the monetary policy and most central banks, and most certainly the Federal Reserve.

With the inflationary numbers coming out of the United States so hot on Friday morning, it’s likely that this will put more pressure on the Federal Reserve to keep monetary policy tight. This should provide more fuel for this pair to go higher, but eventually, gravity comes back into the picture. I look at this market as one that I definitely want to buy, but one that I would like to find some value in before putting money to work. After all, sitting through a 400 PIP drawdown is not my idea of a good time. However, the direction of this pair is obvious and has been for quite some time. With this, I’m just waiting for an opportunity to buy it at a lower level to add to a core position.

USD/JPY Price Forecast Video 13.06.22

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

This article was originally posted on FX Empire


  • Estonia summons Russian envoy to protest Putin remarks

  • Fed seen sharpening rate hikes to smother searing inflation

  • Polish regulator approves banks’ protection scheme plan

  • Trump says daughter Ivanka had ‘checked out’ on election issues

  • Facing record inflation, Biden aims at oil companies

  • Ukraine and Russia: What you need to know right now

(305) 707 0888
FREE water test Quick estimate