USD/JPY Forecast – US Dollar Continues to Pressure Upside Against The Yen

Christopher Lewis
Updated: Jun 14, 2024, 18:51 GMT+00:00

The yen continues to get beaten, and the Bank of Japan has done little to change this path. Because of this, the market will continue to see a lot of noise, but almost all being upwards pressure. The pullbacks at this point in time will end up being a buying opportunity.

US Dollar, FX Empire

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US Dollar vs Japanese Yen Technical Analysis

The US dollar initially rallied on Friday against the Japanese yen to pierce this area of resistance near the 158 yen level, but since then has given back quite a bit of the gains. It’ll be interesting to see how this shakes out, but really at this point, I think it’s pretty obvious that you have a scenario where the Japanese really can’t do much about the value of the yen being eviscerated. The US dollar, of course, pays you at the end of every session against the yen.

So that makes it an attractive buy and hold scenario. Short-term pullbacks at this point in time continue to be buying opportunities, especially with the 155 yen level underneath being so supported and of course attracting the 50 day EMA. You could, with a little bit of imagination, make a bit of an ascending triangle where we are right now, and that might be something worth paying attention to.

If we were to break above the 158 yen level and sustain that gain on a daily close, I think that opens up a move to the 160 yen level, which is basically where the Bank of Japan intervened earlier this spring to push the pair back down. Either way, I have no interest in shorting this market. I do not want to pay swap at the end of every day for the privilege of owning the Japanese yen and fighting the overall trend.

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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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