USD/JPY Forecast – US Dollar Continues to Pressure Yen

USD/JPY Forecast – US Dollar Continues to Pressure Yen

US Dollar vs Japanese Yen Technical Analysis

As you can see the 152 yen level is an area that we continue to pay close attention to. As it has been like a brick wall, I have a sneaking suspicion that the Bank of Japan is intervening quietly behind the scenes, which is nothing new.

If we can break above this level, then it should open up the floodgates. And it certainly looks like we may do so very soon. Every time we pull back, buyers are willing to step in and pick this market up. So, I think it makes a lot of sense that we continue to see plenty of buy on the dip attitude. Remember, you get paid to hang on to this position through swap as the Bank of Japan has recently raised interest rates to just 0%.

With that being said, I believe that the 150 yen level underneath offers a significant amount of support. And now that the 50 day EMA is approaching that level, I think that makes it even more interesting. It’s worth noting that we have not had a significant pullback anytime soon, and it just looks like we are just gradually chipping away at this resistance. I fully expect that one day will just explode to the upside.

And at that point in time, I would anticipate that the US dollar could go looking to the 100 to 55 yen level, which of course is a large round figure, and then possibly beyond that. The Federal Reserve may cut rates later this year, but at this point in time, a lot of traders are starting to dial back on expectations of cuts, at least in frequency and size. And that of course continues to keep the US dollar strong.

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This article was originally posted on FX Empire

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