USD/JPY Price Forecast – The US Dollar Continues to Hover

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gone sideways against the Japanese yen during trading on Wednesday as we continue to see a lot of noisy behavior in general. That being said, the market is more likely than not going to continue to see upward pressure as the Bank of Japan continues its monetary policy. After all, we have a perfect divergence of two central banks here, one of which is tightening, while the other is buying “unlimited government bonds.”

As long as this is going to be the case, it makes sense that we will continue to see this pair grind higher. However, it is so overdone at this point that it’s folly to think that we are suddenly going to turn around and take off to the upside again. I believe it is more likely than not a situation where we will see traders look at it through the prism of “buying the dips”, as we continue to reach the ¥140 level. Because of this, I think it’s likely that we will see more noise than anything else, but the ¥137.50 level should be supported, just as the ¥135 level should be.

If we do break the ¥135 level, then the 50 Day EMA comes into the picture, and things could get a little bit interesting at that point. Ultimately, this is a market that I believe has further to go, but a lot of the quick and easy money has probably already been made. Should probably expect quite a bit of noise, but more of an upward bias than anything else at this point in time.

USD/JPY Price Forecast Video for 21.07.22

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This article was originally posted on FX Empire

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