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USD/JPY Forecast – US Dollar Continues to Reach Toward The 155 Yen Level

By:
Christopher Lewis
Published: Apr 16, 2024, 13:50 GMT+00:00

The USD continues to look very strong, as we are likely to continue to reach toward the 155 yen level. This market will continue to see a lot of buyers on dips from what I see.

In this article:

US Dollar vs Japanese Yen Technical Analysis

The US dollar has rallied a bit during the early hours here on Tuesday, as we continue to grind toward the 155 yen level. The 155 yen level of course is a large round figure that a lot of people will be paying attention to. And therefore, I think it makes a certain amount of sense that maybe there’s a little bit of a short-term pullback.

That pullback will more likely than not end up being a nice buying opportunity that a lot of people will be taking advantage of. Underneath I see the 152 yen level as a major support level and a short-term floor in the market as it was the previous resistance from the ascending triangle and an area that has seen a lot of action in the past.

The 50-day EMA is currently running toward the 152 yen level but has a certain amount of distance to go before we actually get there. Regardless, the interest rate differential between the United States and Japan continues to be a major factor and I do think that’s what people are paying the most attention to. Any pullback at this point in time? I add to my position. It’s that simple. I get paid at the end of every day to hold this pair and have been for some time.

So, it’s made quite a big difference in my trading account. At this point, I have no interest in shorting the market simply because you have to pay swap at the end of the day to do it. That’s not something I’m looking to do as it’s counterintuitive. If we break above the 155 yen level, then we begin to talk about trying to reach the 157 yen level based on historical trading.

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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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