USD/JPY Forecast – US Dollar Continues to Look Bullish Against The Yen

USD/JPY Forecast Video for 14-02-2024

US Dollar vs Japanese Yen Technical Analysis

The US dollar has initially rallied against the Japanese yen during the trading session on Tuesday but continues to struggle with the idea of breaking above the 149.88 level. This is an area that could, of course, be a major barrier that causes plenty of headaches, but given enough time, I think you have a situation where eventually we could break above there and go looking to the 152 yen level. After all, this is a market that has been very bullish for some time, and I think that will continue to be the case going forward. Short-term pullbacks are simply buying opportunities just waiting to happen as we have seen multiple times in the past.

And with that being the case, I think you have to look at the 147.33 level as a major area of support. Anything below there, of course, would be rather negative, but I don’t think at this point in time, it’s very likely that the market will do so. I think that’s an area that will continue to hold quite extensively as support especially as the 50-day EMA is approaching it. Even if we did break down below there the 145 yen level is a massive support level as well, with the 200-day EMA approaching it.

So, with all that being said this remains a buy on the dip scenario because after all you do get paid at the end of every day via swap and of course that is something that people will pay close attention to. Given enough time, I do think that we not only reach 152 yen, but I think we break above there as the Bank of Japan is nowhere near being able to tighten monetary policy. In fact, it’s almost impossible to imagine that the Bank of Japan has any capability to tighten monetary policy due to the massive amount of debt that country is under.

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