USD/JPY Forecast – US Dollar Continues to Consolidate Under Resistance

USD/JPY Forecast – US Dollar Continues to Consolidate Under Resistance

US Dollar vs Japanese Yen Technical Analysis

At this point, it looks like the 152 yen level is an area that a lot of people will be paying close attention to as we continue to pressure this level, which of course has offered quite a bit of a barrier. If we can break above the 152 yen level, then it opens up the possibility of a move to the 155 yen level. Short-term pullbacks at this point in time offer buying opportunities from everything that I can see, and therefore I think you’ve got a situation where buying dips will continue to be the way going forward.

In general, I think that the 150 yen level is going to be significant support and the fact that the 50 day EMA sits right there has a lot to do with that as well. Not only is it a large round number, but it’s also an area that has a technical indicator that a lot of people follow right at it. If we do pull back, I do think that more people will be willing to jump in looking for value.

The Federal Reserve is likely to cut rates only twice between now and the end of the year. So that puts more upward pressure on this market, which of course has the Japanese offering zero percent interest all the way up to one tenth of a percent. The Bank of Japan is almost certainly behind the scenes manipulating this pair a bit, but sooner or later we will break through this barrier.

They are essentially trying to slow down the rapid ascent of the greenback against the yen. When you look at other currencies against the yen, they’re all taking off at the moment. So, it seems like they are focusing on this particular pair. However, once this rips through resistance, not only will it go higher, but you will probably see most yen denominated pairs really start to take off as well.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: