USD/JPY Forecast – Dollar Still Looks Bullish Against The Yen

USD/JPY Forecast Video for 06-02-2024

US Dollar vs Japanese Yen Technical Analysis

The US dollar has risen slightly against the Japanese yen during early trading on Monday as the Federal Reserve looks further away from rate cuts than I think a lot of people thought they would be. This was exacerbated on Friday as the jobs number came out much hotter than anticipated, so that of course comes into the picture as well.

And with that, you have to question whether or not we aren’t going to try to break to the upside and eventually reach the highs again. I think that’s probably true so 150 yen would be the first target and then, after that, you’d be looking at 152 yen. Short term pullbacks at this point will continue to look at the 50 day EMA underneath as a major support and of course, the 145 yen level underneath there as support.

It’s not until we break down below the 200 day EMA that I begin to question the validity of the overall uptrend. So really at this point in time, I’m looking to take advantage of short-term dips in the market as value for the green bag. I think the Japanese yen of course is going to suffer against not only the green bag, but other currencies as well, as it’s obvious that the Bank of Japan is nowhere near tightening monetary policy. Therefore, I don’t see what stops this market from going higher.

And in fact, it does look like we had formed some type of bullish flag. And if the measured move of the bullish flag is to be believed, we’re not only going to reach the recent highs at about 152 yen, but perhaps blow through there. It doesn’t mean that we have to go through there in the next day or two, but it does suggest that we could eventually see that happen. It’ll be interesting to see how this plays out, but right now it looks like the buyers are definitely going to be in control when it comes to this currency pair.

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