US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar spiked against the Japanese yen during the course of the trading week, as we continue to probe higher. However, we did pull back quite a bit later in the week to form a shooting star. The question now is whether or not this is the beginning of some type of significant pullback? I think that would make a certain amount of sense, because we have gone straight up in the air for so long. The Bank of Japan reiterates its plan to buy every bond it can, so I do think in the longer term we continue to go higher, but eventually momentum becomes an issue.
I would point out that the last couple of candlesticks have been shooting stars and hammers, so this tells me we probably get more of a pullback than anything else. I do not think that this is the beginning of something drastic or some type of trend change. I think this is more or less going to be an opportunity to reload your trades for the longer term, but it may take a few weeks to get everything stabilized and turned around. It’s typical on longer-term charts, and if you look at the way it behaved just a few months ago, we may be looking at something like that.
On the other hand, if we were to break above the top of the two candlesticks over the last couple of weeks, that would be an explosive sign that we are going toward the ¥140 level eventually. I think we get there regardless, the question is now going to be what road we take to show up.
USD/JPY Price Forecast Video 04.07.22
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire