Yahoo Finance USD/JPY Forecast – US Dollar Continues to Rally Against the Japanese Yen
USD/JPY Forecast Video for 16.05.23
US Dollar vs Japanese Yen Technical Analysis
The US dollar rallied on Monday to show signs of life again, as the Japanese yen continues to suffer at the hands of quantitative easing. Ultimately, this market will continue to see a lot of volatility and is more likely than not to have to deal with back-and-forth behavior due to the risk appetite being all over the place. Keep in mind that the pair has been extraordinarily choppy recently, and we are in the midst of a major ascending triangle. Furthermore, the 50-Day EMA sits just below the candlestick from Friday and is starting to rise.
The market pulling back at this point in time should continue to find plenty of buyers, and it’s probably worth noting that the market has seen a lot of concern, but at this point in time it does make quite a bit of sense that the US dollar attracts inflows due to the concerns around the world economically. While the Japanese yen is considered to be a “safety currency” as well, the reality is that the Bank of Japan continues to operate in a quantitative easing fashion, and therefore it makes sense that we would see the yen suffer against not only the US dollar but other currencies as well. With this being said, the market is likely to continue to see choppy but upward behavior, and as long as that’s going to be the case, it’s likely that we will have plenty of opportunities every time the market pulls back a bit.
That being said, if the US dollar were to drop down below the 50-Day EMA indicator, then the market could drop down toward the ¥134 level. If we were to break down below the ¥134 level, then it’s possible that we could go looking to the uptrend line underneath, which of course has had a lot to do with forming the overall attitude of the market as we have been going through this ascending triangle. Ultimately, if we can turn around a rally from here, then the market is ready to go toward the ¥138 level above, and breaking above that level then opens up more or less a “buy and hold” scenario, perhaps sending the USD/JPY pair toward the ¥148 level.
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This article was originally posted on FX Empire
