Yahoo News USD/JPY Forecast – US Dollar Continues to Chop Against The Yen
USD/JPY Forecast Video for 27.01.23
US Dollar vs Japanese Yen Technical Analysis
The US dollar has gone back and forth during trading on Thursday, as the GDP numbers for the 4th quarter came out. At this point, the market continues to hang around the ¥130 level, an area that obviously would attract a lot of attention. I do believe that ultimately we have to make a bigger decision sooner rather than later, so it’ll be interesting to see all this plays out.
I do think at this point in time we have to pay close attention to the Bank of Japan, but right now it looks like the yields in America continue to struggle as well. So if yields drop globally, that means that the Japanese won’t have to put as much effort in keeping yields down in their markets. Remember, in order to keep yields down, they will have to print currency, which obviously is a very negative thing for the yen.
Ultimately, this is a market that I think will have to deal with a lot of noisy behavior from the bond markets, and as result I think choppiness is probably the only thing you can count on. I also recognize that the 127 level underneath is probably going to be massive support, so if we were to turn around and lose these 300 pips, I think that opens up a major “trapdoor” in the market, allowing massive selling to enter the market yet again. This is all going to be about bond markets and yields, so if yields continue to drop, the Bank of Japan may be able to thread the needle.
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This article was originally posted on FX Empire
