Yahoo Finance USD/JPY Price Forecast – The US Dollar Pulls Back to Find Buyers
US Dollar vs Japanese Yen Technical Analysis
The US dollar has pulled back a bit during the trading session on Monday, as we continue to see a lot of volatility. However, it certainly looks as if the overall trend is ready to continue because buyers have come back in to pick this market up again. With that in mind, makes quite a bit of sense that we remain a “buy on the dip” type of market, and therefore you have to keep an eye on these pullbacks as potential opportunities.
It looks as if the ¥137.50 level is going to continue to be supported, but even if we were to break it down below there the ¥135 level comes into the picture as well. In other words, there are plenty of areas underneath that could come into the picture to turn things around. I have no interest in trying to short this market anytime soon unless of course there is some type of change in stance from either the Federal Reserve or the Bank of Japan. At this point, it does not look very likely, so pullbacks will continue to be thought of in the vein of buying opportunities.
Interest rate differentials continue to favor the US dollar going forward and should continue to be so for quite some time. The ¥140 level above will be the next target, but it could take a little while to get there. The market has been rather parabolic, so it does make sense that we would see the occasional pullback in order to recognize gravity from time to time.
USD/JPY Price Forecast Video for 19.07.22
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This article was originally posted on FX Empire
