The Japanese yen weakened as the Bank of Japan decided to maintain its ultra-loose monetary policy to support a fragile economic recovery that is becoming increasingly cloudy as global growth slows. The Central Bank of Japan unanimously decided to leave the short-term interest rate at -0.1% and the yield on 10-year bonds at around 0% at its June meeting, which was in line with expectations. The BOJ’s dove stance keeps the yen close to multi-month lows as other major central banks continue to fight inflation.
USD/JPY Weekly Forecast June 19 — 23, 2023
Quotes of the currency pair Dollar to Yen USD/JPY complete the trading week with growth near the area of 141.16. The pair continues to move as part of the rise and the bullish channel. Moving averages indicate a bullish trend. Prices have broken through the area between the signal lines up, which indicates pressure from buyers of the US dollar and a potential continuation of growth already from current levels. At the moment, we should expect an attempt to develop a price reduction and a test of the support level near the area of 139.45. Then, a rebound upwards and the continuation of the growth of the pair to the area above the level of 149.95.
An additional signal in favor of the rise of the Dollar/Yen pair in the current trading week will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for the USD/JPY pair in the current trading week June 19 — 23, 2023 will be a fall and a breakdown of the 135.65 area. This option will indicate a breakdown of the support area and the continued fall of the pair on Forex to the area below the level of 132.45. The USD/JPY growth will be confirmed by the breakdown of the resistance area and the closing of the price above the level of 143.05, which will indicate the breakdown of the upper limit of the bullish channel, and this is a signal to increase the width of the channel.
USD/JPY Weekly Forecast June 19 — 23, 2023 suggests an attempt to test the support level near the area of 139.45. Where should we expect the pair to continue rising to the area above the level of 149.95. An additional signal in favor of growth will be a test of the trend line on the relative strength index (RSI). Cancellation of the pair’s rise option will be a fall and a breakdown of the level of 135.65. This will indicate a continued decline in the pair with a potential target below the 132.45 area.
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