USD/JPY Weekly Price Forecast – US Dollar Continues to Pressure Upside

US Dollar vs Japanese Yen Weekly Technical Analysis

As you can see, the 152 yen level has been an area of significant resistance, and we continue to struggle there. That being said, I do think it’s probably only a matter of time before we break out above 152 yen and continue to go much higher. I have no interest whatsoever in trying to short this market. I think if it does pull back, it’s just going to give us a nice buying opportunity. After all, just take a look at the trend, it has been relentless. If we can break above the 152 yen level, this thing could just take off. At that point I think you could see the yen crater.

Bank of Japan has been jawbone in the market and they did increase interest rates by a 10th of a percent or to a 10th of a percent, I should say. And therefore, technically, it’s positive interest rates. But at the end of the day, you can still drive a truck through the interest rate differential between the US dollar and the Japanese yen and therefore you continue to get paid holding this pair.

Be cautious, don’t get overly exposed, we could see a little bit of a pullback, but once we get above 152, I’m going to become much more aggressively bullish than I am already. At this point, the USD/JPY pair continues to be a long-term trend and investment that most traders will be paying attention to.

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This article was originally posted on FX Empire