USD/JPY Forecast – US Dollar Finds Buyers After NFP

USD/JPY Forecast Video for 08.05.23US Dollar vs Japanese Yen Technical Analysis

The US dollar has found a bit of buying pressure after the jobs number came out better than anticipated on Friday. By doing so, it reiterates the idea that the Federal Reserve will have to remain tight for longer, which does make this pair more likely than not to continue going higher over the longer term as we have seen so much in the way of tightening from the Federal Reserve, while we have seen a significant amount of quantitative easing coming out of Tokyo.

The Bank of Japan continues to fight rising rates, and will have to do so by purchasing JGBs, specifically the 10 year yield. Because of this, they step into the market and buy more of these bonds, and in the process print more currency. With that being the case, it’s very likely that we continue to see the Japanese Yen suffer at the hands of currencies that have much…

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