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

US Dollar vs Japanese Yen Technical Analysis

The US dollar rallied rather significantly during the early hours on Monday as we continue to see the interest rate differential push this pair much higher. That being said, it is a little extended during the day. So, while I do think we go higher, and I do think that we test at least 155 yen, I also recognize that there will be the occasional pullback. That pullback should end up being a buying opportunity though, so I certainly wouldn’t sell this market. The 152 yen level is an area that we previously had seen significant resistance at, and it should now be an opportunity for buyers to jump into the market based on market memory.

The 50 day EMA sits just above the 150 yen level as well and is rising so everything leads to a higher US dollar against the Japanese yen. Again though, it does tend to be choppy, and you have to be somewhat patient with these moves, but right now we have blown through a major level in the form of 152 yen and this of course is playing out with people covering shorts or jumping the trade in a bit of a FOMO trade.

All things being equal, I don’t see anything that’s going to stop us from testing the 155 yen level and perhaps even going higher than that given enough time. In fact, I am hoping the Bank of Japan intervenes, so that I can buy more at a lower price in the future.

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