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USD/JPY Forecast – US Dollar Continues to Look Bullish

By:
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.

In this article:

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.

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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