USD/JPY Forecast: Continues To Try To Form A Bottom Against

Date

4/26/2023 2:20:52 PM

(MENAFN- Daily Forex)

On Tuesday, the US dollar has been experiencing a lot of noisy behavior in its trading session against the Japanese yen.
Currently, it is sitting just above the 200-Day EMA, which attracts a lot of attention.
Just attracting a lot of attention, while the 50-Day ema offers support rt.
However, if the market breaks down below the EMAs, it is likely to go down to the ¥130 level, a large, round, psychologically significant figure where buyers have previously come to the rescue of the dollar.

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On the upside, traders need to pay close attention to the ¥135 level, a large, round, psychologically significant figure that would make for good headlines. If the market breaks above this level, it opens up the possibility of a move to the ¥137.50 level, an area that has already proven itself to be resistant more than once. However, breaking that level opens up more of a "buy-and-hold" type of market, which is unlikely to happen soon.

It is essential to remember that the Bank of Japan continues its yield curve control policy, ensuring that the 10-year JGB does not rise above 50 basis points. Every time the bond gets close to this level, the Bank of Japan will print yen to buy more bonds and keep rates down. Currently, it seems like the market is trying to figure out what to do with itself in the general vicinity, and more of the same can be anticipated. Nonetheless, the market has bounced rather hard the last couple of times it sold off, suggesting a lot of support underneath. Therefore, the market may eventually break out to the upside.Pay Attention to the Bank of Japan's Yield Curve Control Policy

The US dollar's performance against the Japanese yen has been characterized by a lot of noisy behavior, making it challenging to predict market movements. The market is currently hovering around the 200-Day EMA, attracting a lot of attention, while the 50-Day EMA offers support below. Nonetheless, if the market breaks below the EMAs, it is likely to reach the ¥130 level, where buyers have previously come to the rescue of the dollar.

On the upside, traders need to pay attention to the psychologically significant figure of ¥135, potentially leading to a move to the ¥137.50 level if breached. However, this is unlikely to happen soon, and traders need to consider the Bank of Japan's yield curve control policy that keeps rates down.

At the end of the day, the US dollar's performance against the Japanese yen has been characterized by a lot of noisy behavior, making it difficult to predict market movements. Traders should watch the 200-Day and 50-Day EMAs for support, while the psychologically significant levels of ¥130 and ¥135 could influence market movements. However, the Bank of Japan's yield curve control policy is a factor that should be taken into consideration when making predictions about the market.

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