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USD/JPY Price Forecast – US Dollar Recovers Against the Japanese Yen

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US Dollar vs Japanese Yen Technical Analysis

The US dollar initially fell during trading on Monday but then turned around to show signs of life again. The ¥135 level continues to be crucial, so it is worth paying close attention to. The overall uptrend looks as if it is going to continue as one would anticipate. After all, the Bank of Japan has reiterated its desire to do anything it takes to keep interest rates low, meaning that they are still in a quantitative easing mode.

At this juncture, it’s likely that every time we pull back, there will be buyers willing to get involved but it’s also worth noting that the market has gotten a little bit overextended, so having said that I think it’s probably a buying opportunity on dips more than anything else. The recent high just above the ¥136 level could be a little bit of a barrier, but if we can break above there, then the “buy-and-hold” momentum continues.

The ¥132.50 level underneath is an area that I think will be supportive as well, especially with the 50 Day EMA racing towards that area. Underneath there, the ¥130 level is also an area that I would have to pay close attention to as it was previous resistance and it is a large, round, psychologically significant figure. At this point, the Federal Reserve looks as if we are ready to continue to see quantitative Titan, so this becomes more or less a “one-way bet.” In fact, it’s not until one of these central banks changes their attitude that this market has any real shot at breaking down. In general, I believe we go much higher over the longer term.

USD/JPY Price Forecast Video 28.06.22

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This article was originally posted on FX Empire

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