USD/JPY Forecast – US Dollar Continues to Look Bullish

Christopher Lewis
Published: May 27, 2024, 13:33 GMT+00:00

The US Dollar continues to see upward momentum overall against the Japanese yen, but on Monday could be thought of as a “pause”, with the day being Memorial Day in America. This doesn’t change the overall trend, but it was worth noting that the liquidity would be thin.

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US Dollar vs Japanese Yen Technical Analysis

Very little has happened in the early hours on Monday, which is not a huge surprise considering that it was Memorial Day in the United States and the British also had a bank holiday. So, a lot of liquidity was just taken right out of the market. However, when you look at the chart, you can see just how bullish it is overall, and I think you have to continue to look at the dollar in the same vein of trying to find any dip as a buying opportunity to pick up cheap dollars. The 155 yen level underneath is a large round number that a lot of people have taken advantage of multiple times. So, if we were to pull back from here, I do think it offers support.

The 50 day EMA is also racing towards that area, so it also helps that as well, to the upside, I believe that the 160 yen level is the target, and I think we will get there eventually. But that being said, this is a market that is likely going to be very noisy and choppy. This doesn’t mean that this is an easy trade to take, but what I do appreciate is that we get paid at the end of every day via swap to hang on to this pair. So quite simply, I think that’s what institutional traders will continue to do going forward as the market is clearly in one direction, not the other.

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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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