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

Christopher Lewis
Published: Jun 18, 2024, 14:09 GMT+00:00

The US dollar has rallied again in the early hours of Tuesday trading. This is a market that I think is eventually going to grind much, much higher, but at this point, we are simply working on chipping away at the resistance above.

In this article:

US Dollar vs Japanese Yen Technical Analysis

The U.S. dollar has rallied a little bit during the early hours on Tuesday again, as we continue to see traders truly punish the Japanese yen for a lack of interest rates and swap coming from Japan. After all, you get paid to hang on to this pair. And I just don’t see how that changes anytime soon. With that being the case, I think you have a situation where anytime it dips, it does make a certain amount of sense that we continue to see buyers jump in and take advantage of cheap US dollars.

This is an investment, not just a trade. So, I think at this point in time, longer term traders have been hanging onto this for quite some time. Underneath we have the 155 yen level that I think offers significant support. We also have the 50 day EMA sitting just above there. And I do think that comes into the picture as well. So, pay close attention.

The 160 yen level above continues to be a major factor. And if we can break above there, then I think the market is likely to continue to climb, perhaps for more of a longer term buy and hold scenario. As things stand right now, I am more than willing to simply buy dips and take advantage of value as it appears. If we were to somehow break down below the 155 yen level, then the next major support level is at 152 yen. I just don’t see that happening, but it is something that you need to keep in the back of your mind.

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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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