USD/JPY Forecast – US Dollar Continues to Pressure The Resistance Barrier

US Dollar vs Japanese Yen Technical Analysis

You can see that the dollar yen has shown itself to be resilient in the sense that we continue to hang around the 152 yen level. And this point in time, it looks very much like a market that is building up pressure to try to break to the upside.

If it can break to the upside, then it’s very likely that we will go much higher. At that point, I would anticipate that we have a situation where traders will play FOMO trade, and not only buy, but there might be quite a bit of short covering at the same time. With that being the case, I think you have to look at this through the prism of a market that, quite frankly, will race towards the 155 yen level.

The 155 yen level is a large round figure, so I would expect some type of reaction, but I don’t necessarily think that it would be major other than the fact that it might be a place where some people take some profit. Underneath we have the 150 yen level with the 50 day EMA coming into the picture as well, so that’s probably worth paying attention to.

That’s assuming that we even get there. I would be very interested in buying on a dip like that, but we’ll just have to wait and see. Keep in mind the interest rate differential is a mile wide. You can continue to get paid to hang on to this position. And I think in fact that’s what most people will try to do. So with that being said, I am bullish, but I also recognize that you’re going to have to sit on your hands for a while and let the market work through this massive barrier.

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