USD/JPY Forecast – US Dollar Continues to See a Lot of Upward Pressure

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially fell during trading on Friday but turned around to show signs of life. It looks to me like a market that’s doing everything it can to build up the necessary pressure to eventually break above the virtual ¥152 level.

The ¥152 level is an area that a lot of people have been watching, as it has been like a bit of a brick wall as of late. Nonetheless, this is a scenario where you have a lot of buy on the dip traders, and the interest rate differential will of course continue to favor anything not called the “Japanese yen” at this point. Quite frankly, the idea of owning the yen is nothing short of laughable at this point in time.

The jobs number on Friday came out hotter than anticipated, so it does make a certain amount of sense that we would see the US dollar recover and then take off. But whether or not we can break above the ¥152 level remains to be seen. I do think it happens given enough time, but obviously we are building up the necessary pressure to make that happen. Eventually, something has to give, and the markets will run hotter.

Underneath, we have massive support at the ¥150 level, which is also backed up by the 50 day EMA. So, it all ties together quite nicely. With this, I look at dips as buying opportunities, as I’ve been saying for two weeks now, and eventually, once we break above the ¥152 level, it’s likely that we see a big move towards the ¥155 level.

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