USD/JPY Weekly Forecast – US Dollar Bounces From Major Trend Line

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USD/JPY Forecast Video for 02-01-2024

US Dollar vs Japanese Yen Weekly Technical Analysis

You can see that the US dollar has pulled back rather significantly during the course of the trading week only to turn around and show signs of life against the Japanese yen. At the end of the week, we are forming a bit of a hammer which was preceded by an inverted hammer. And therefore, it looks like we are entering a region of consolidation. Ultimately, I do think that we will have to make a bigger move, but right now I think this uptrend line continues to be important. And if we can break above this weekly candlestick that we’re printing now, we could go as high as 145 yen. Breaking above there confirms the overall uptrend. Currently, the big argument is whether or not the Federal Reserve is going to cut interest rates enough to really eviscerate the dollar, or is the weakness coming out of Tokyo and the Bank of Japan going to be a situation where the Japanese yen gets punished? Could be a little bit of both, but we are still very much in an uptrend, at least until we break down below 140. If that happens, things could change rather drastically and in short order.

At that point in time, you may be able to make an argument for a much steeper decline. It’s very unlikely that will happen, but if it does, it’s very likely that the market could drop rather drastically. All things being equal, that would probably accompany US dollars selling all over the world, not just against the Japanese yen. In that scenario, you probably see the US dollar fall apart against most major currencies.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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