USD/JPY Forecast – US Dollar Continues to Press The Upside

US Dollar vs Japanese Yen Technical Analysis

You can see that the U.S. dollar did pull back just a bit against the Japanese yen during the early hours on Thursday, but at this point in time we have broken out above the crucial 152 yen level, an area that of course has been important more often than not over the last month or two. So, at this point, it looks like we definitely are going to continue to see upward momentum over the longer term. That doesn’t necessarily mean that we are going to see it happen right away. And there is a very real possibility that we pull back for a little bit and collect more buyers and our breath at the same time.

Nonetheless, I think this is a situation where you have to look at this from the prism of a market that has smashed through a major barrier and now is looking to start the next leg higher. At this point, I anticipate that the US dollar will eventually go looking to the 155 yen level, an area that I’ve been looking for some time, and now that we’ve busted through this ceiling, we can actually make that move.

I like buying dips. I will be adding along the way, and I will be aggressive about it, due to the fact that the interest rate differential continues to get you paid on a daily basis. With that being said, and the fact that the Bank of Japan is nowhere near being able to tighten anything seriously, this is a market that’s going higher.

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