Yahoo Finanza USD/JPY Weekly Forecast – US Dollar Recovers During the Week
USD/JPY Forecast Video for 16.10.23
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar has fallen significantly during the course of the trading week, to reach down toward the crucial ¥147.80 level. In that scenario I think it continues to be important, so I do anticipate that any pullback toward that area will attract a certain amount of value. On the other hand, if we were to turn on and break above the ¥150 level, then it opens up a move to the highs at the ¥152 level. All things being equal, this is a market that I think continues to be very noisy, and I think at this time, the market is likely to see a lot of volatility, but ultimately we are in a very bullish market due to the fact that the interest rate differential continues to favor the upside.
That being said, if we were to break down below the previous week’s candle, then we could see the US dollar drop down to the ¥145 level, which is an area that previously had been resistance. Ultimately, this is a market that continues to see a lot of noise, but at the end of the day we are still very much in an uptrend. The market breaking above the ¥152 level could open up the possibility of an even bigger move.
Keep in mind that the Bank of Japan is the main culprit for the movement in this market, but all things being equal, the Federal Reserve is also going to stay “higher for longer” when it comes to the interest rate situation, so I think it all comes together for a continued bullish run in the US dollar, not only against the Japanese yen but most other currencies as well.
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This article was originally posted on FX Empire
