USD/JPY Forecast – US Dollar Continues to Flex Its Muscles

Christopher Lewis
Published: Apr 23, 2024, 13:44 GMT+00:00

The US dollar continues to pressure the 155 level showing signs of perhaps trying to break out given enough time.

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US Dollar vs Japanese Yen Technical Analysis

You can see that the dollar yen has shown itself to be somewhat quiet during the early hours on Tuesday, but at the end of the day, it is still pressuring the crucial 155 yen level. This is an area that I think a lot of people will continue to pay close attention to and if we can break above there, it will bring in more FOMO trading.

Ultimately, I do think that it is probably only a matter of time before traders get involved and do break above there, but if we do get a pullback, the 154 yen level seems to be supported, and the 152 yen level is almost certainly supported. So, with that being the case, I’m looking at buying dips. In fact, I have been doing so for several weeks, and will add once we get above 155 on a daily close.

That’s been the strategy for months, and I just don’t see that happening to change anytime soon. Ultimately, I like this as a trade for the longer term because it does pay interest. And let’s face it, the Bank of Japan is not going to be able to tighten monetary policy anytime soon. So, with that, there’s no real reason to get too cute with this as the obvious scenario here is that the US dollar should continue to climb against the Japanese yen as you do get paid to hang on to this pair via swap every day. I have no interest in selling.

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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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