USD/JPY Forecast: USD Continues to Look Bullish – 02 March 2023
Although the market will likely rise over time, there may be some time before seeing a significant buying opportunity.
The yen is a popular asset during turbulent times.
Looking at the charts, the ?135 level appears to be a crucial support level. It is a round, psychologically significant figure and an area where the market has seen both support and resistance in the past. Therefore, it’s probable that the market will continue to experience noise around this vicinity. The US dollar is unlikely to sell off drastically in this situation. Instead, it seems as though the market is trying to find enough momentum to break out above the ?137.50 level, which has been a crucial level in the past.
Moreover, the 50-Day EMA is getting ready to cross above the 200-Day EMA, which is a potential “golden cross” that some longer-term traders like paying attention to. This technical indicator shows a bullish signal for the US dollar, implying that the market may rise eventually.
However, it’s advisable to exercise caution before jumping back into this market. Although the market will likely rise over time, there may be some time before seeing a significant buying opportunity. Additionally, the Bank of Japan continues to do yield curve control, keeping the 10-year yield at 50 basis points or below. This means that the bank may have to buy unlimited Japanese Yen to fight the bond market.
In conclusion, the market for the US dollar against the Japanese Yen is expected to be choppy and noisy in the short term. If you are patient and wait for signs of support, you may have an excellent buying opportunity in the greenback against the Yen, which is likely to continue to experience weakness over the longer term, just as it did last year. Keep in mind that these moves can be quite brutal, so make sure that you enter slowly, and add to your position as the trade works out in your favor. I believe that the ?140 level could be targeted over the next couple of weeks, but it will be volatile due to the fact that we see so many concerns around the world.
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