By 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.
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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