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USD/JPY Forecast – US Dollar Continues to Grind Higher Against The Yen

By:
Christopher Lewis
Published: May 20, 2024, 13:55 GMT+00:00

The US Dollar continues to see a lot of upward pressure against the yen as we continue to see the longer-term trend play out as it is so strong, and it seems like there is nothing that matters more than the interest rate differential, and of course the geopolitical aspect of the USD being safety.

In this article:

US Dollar vs Japanese Yen Technical Analysis

The dollar has risen a bit in the early hours against the Japanese yen on Monday, as it looks like we are trying to reach the 156.50 yen level again. Underneath the 155 yen level is an area that I think we’ll be paying close attention to, as there should be plenty of support. Regardless, we are in an uptrend, and I just don’t see how that changes anytime soon and with that I remain bullish overall. That doesn’t necessarily mean that I’m throwing tons of money at this market, but I do think that each pullback ends up being a potential buying opportunity.

After all, the US dollar benefits from stronger rates and at the same time, the Bank of Japan has absolutely no chance of raising rates, anything substantial anytime soon with the massive debt load that the Japanese currently have. With this, I do think it’s probably only a matter of time before we go back towards the 160 yen level above, which is where we got turned around due to the Bank of Japan intervention.

Underneath we saw plenty of support not only at the 155 yen level but also the 50-day EMA which is where we bounced from a couple of sessions ago. Because of this, I think we will still continue to see upward pressure in the market, and I look at drops in price as a potential buying opportunity.

For a look at all of today’s economic events, check out our economic calendar.

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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