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

Christopher Lewis
Published: Apr 22, 2024, 13:56 GMT+00:00

The US Dollar has rallied a bit to the 155 level, as it looks likely to be a major barrier.

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US Dollar vs Japanese Yen Technical Analysis

You can see that we rallied a little bit during the trading session on Monday. And I think at this point, you need to continue to look at the ¥155 level. This is an area that has been important multiple times in the past, going back years and decades, and it certainly looks as if it is causing a little bit of a barrier. This area continues to be like a brick wall, but let’s be honest here – the pair is going higher.

We saw the same action just below the ¥152 level, and then eventually broke out. I don’t see any reason why this doesn’t end up being the same thing again, with the Bank of Japan just not being able to tighten monetary policy anytime soon. If that’s going to be the case, then I think eventually we break out and go look into the ¥157 level after that, and then you’re talking about ¥160.

Really, at this point, the only real threat with the Bank of Japan is going to be if the yen falls apart too quickly. That doesn’t look to be the case. And therefore, I think a gradual grind and then a breakout ends up being what happens next. Short term pullbacks continue to see plenty of buying opportunities and buying pressure, with the ¥152 level now offering a bit of a floor. Remember, you continue to get paid at the end of the trading session. And ultimately that’s what’s going to matter.

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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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