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USD/JPY Price Forecast – The US Dollar Continues to Power Against Yen

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US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied significantly during the trading session on Friday as we continue to see the overall trend set up for momentum. At this point, we are getting close to breaking out to a fresh, new high, and that should attract quite a bit of inflow. When you look at this chart, you can see clearly, we have been in an uptrend for ages.

The Bank of Japan continues to work against the value of the Japanese yen by keeping interest rates at 0.25% or lower on the 10-year note. At this point, it appears that the Bank of Japan is not going to relent, and therefore we should see continued weakness in the yen. On the other side of the equation, there is the Federal Reserve, which is tightening everything it can, and therefore it makes a lot of sense that we would see this pair continue to go higher. Where it ends up I do not know, but it’s obviously going to be higher than we are now. Given enough time, I think that we will eventually leave the ¥135 level in the review mirror.

The 50 Day EMA is just below the ¥130 level and rising, so it does more than likely mean that it will offer a certain amount of dynamic support in that general vicinity. Buying the dips continues to be the way to go in this market, and therefore that’s the trade I will be looking for. Little signs of support on dips will more than likely be jumped upon by Forex traders.

USD/JPY Price Forecast Video 20.06.22

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This article was originally posted on FX Empire

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