Category: Forex News, News

USD/JPY Forecast – US Dollar Finds Support Against the Japanese Yen

USD/JPY Forecast Video for 27.04.23

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US Dollar vs Japanese Yen Technical Analysis

The US dollar initially fell during the trading session on Wednesday, dipping below the 50-Day EMA before finding plenty of support. That being said, the market looks as if it is trying to form some hammer, which is a bullish sign, and, therefore, it’s likely that we will continue to see buyers on dips and upward momentum in the US dollar. That being said, it is moving rather slowly, but that makes a certain amount of sense considering just how many questions there are around the world regarding where we are going next.

If we break down below the bottom of the candlestick for the Wednesday session, then it’s possible that we could go down to the ¥132.50 level, which is an area where we have seen a lot of support previously. After that, we could look to the ¥130 level, which, of course, is a large, round, psychologically significant figure and an area that would probably attract a lot of attention. On the other hand, if we break out to the upside; the market could go looking to the ¥135 level, an area that, of course, is also a large, round, psychologically significant figure, and therefore I think it’s probably going to be an area where we would see a lot of noise.

Ultimately, I do think that it remains that the market will continue to be very choppy, which makes sense considering that a lot of this is based on the bond market, which has been very noisy. The Bank of Japan continues its yield curve control policy, keeping the 10-year JGB to 50 basis points or less. As long as that’s the case, the Japanese yen could get printed in mass amounts, which could flood the market with a lot of Japanese yen, therefore dropping the currency and value. The US dollar also has to look at this through the prism of strengthening due to interest rates, which remain high in the United States. As long as that’s the case, it should continue to push this market higher, and if we can break above the ¥135 level, I suspect there will be even more momentum to the upside in this market.

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

This article was originally posted on FX Empire


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