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USD/JPY Forecast: USD Builds Pressure against the JPY – 01 September 2022

I think it’s probably only a matter of time before we get more buying pressure.

The US dollar fell slightly during the trading session on Wednesday but continues to levitate against the Japanese yen. I think we are building up pressure to continue going higher and challenge the ?140 level.The US dollar continues to strengthen against most currencies, but now that we have the jobs number coming out on Friday, there may be a little bit of hesitation over the next 24 hours.That being said, I have no interest in shorting this market and I believe that it is probably only a matter of time before I will start to buy even more dollars against the yen.


It’s worth noting that there’s a little bit of a bullish flag underneath that I have marked on the chart, which means we should have a significant amount of support near the ?136 level. It is not till we break down below there that I would become somewhat concerned about the pair, and even then, the 50-Day EMA comes into the picture to offer support. With this in mind, I think it’s probably only a matter of time before we get more buying pressure. After all, the pair has been very strong for quite some time, and we have formed a massive “W pattern”, that a lot of traders will be paying close attention to. Over the longer term, I think it’s probably only a matter of time before we continue to go much higher, but the ?140 level almost certainly causes a bit of hesitation.

Once we can break above the ?140 level, I believe that the USD/JPY continues to go higher to fulfill the measured move of the bullish flag, which opens a possible move to the ?143 level, maybe ?142.50. Either way, this is a bullish market and as long as the Bank of Japan continues to do everything it can to bring down interest rates, I will continue to look at this through the prism of picking a value every time it drops. The US dollar is without a doubt the strongest currency in the world right now, and I just don’t see how that changes anytime soon. The Japanese yen will continue to suffer at the hands of the Bank of Japan, so this is still a bit of a perfect setup.

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