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US dollar rallies again against Japanese yen on Thursday

By:
Christopher Lewis
Updated: May 18, 2018, 05:31 UTC

The US dollar has exploded to the upside during the trading session on Thursday, reaching to higher levels against the Japanese yen. It now appears that we are going to continue to see higher pricing over the longer-term, and I think it’s only a matter of time before buyers command on the short-term pullbacks.

USD/JPY daily chart, May 18, 2018

The US dollar has exploded to the upside during the trading session on Thursday, as we have cleared the ¥110 level significantly. Because of this, I think it’s only a matter of time before the buyers get involved and that they will continue to be value hunters. I believe that a lot of this comes down to the US dollar strengthening overall, and the rising interest rate in the USA. Because of this, I think that the Bank of Japan keeping its monetary policy very loose should continue to boost this market as well. As interest rates rise in America, that continues to put a lot of buying pressure in this market. The “double whammy” is the fact that stock markets are going to continue to find buyers, which is typically good for this market as well.

I believe that the ¥110 level should continue to offer a significant amount of support, and if we break down below there I think it would represent a turning point in this pair. I like the idea of buying short-term dips and will continue to do so as I think we are probably going to go to the ¥112.50 level above, which should be a bit of resistance based upon the longer-term charts. I think the summer is going to be good for the US dollar, and we should continue to see the greenback rally against the Yen overall.

USD/JPY Video 18.05.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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