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USD/JPY Forecast – US Dollar Continues to See Buyers Despite Dip

By:
Christopher Lewis
Published: May 15, 2024, 14:06 GMT+00:00

The US Dollar fell a bit in the early hours on Wednesday, as the retail sales number in the USA fell short. The CPI numbers were also a bit soft, and this had a lot of traders selling the greenback. However, this is a trend that isn’t going anywhere.

In this article:

US Dollar vs Japanese Yen Technical Analysis

The US Dollar really did fall during trading day in the dollar yen. That being said, this was thanks to CPI numbers coming out basically what we thought they would be. But retail sales numbers coming out flat. So, by missing retail sales by 4/10 of a percent, traders are getting excited at the prospect that perhaps the Federal Reserve may have to cut rates again.

It’s the same story that we’ve had for some time where the Wall Street traders are getting excited. And quite frankly, it looks to me like it’s going to be a scenario where the 155 level is important. And then the 50 Day EMA level. I have no interest in shorting in this market because quite frankly, you get to pay for it at the end of every day. And that’s not something I like doing.

So, with that being said, I do think that this ends up being an opportunity for scaling back the overstretched trade. As for myself, I’ve already added a little bit on the opening because it should offer you, but you have to keep in mind that we could have volatility for a couple of days. And quite frankly, this might have just been the excuse to start selling off due to the fact that we have seen so much upward pressure over the last, say, 6 or 7 sessions. Regardless, the trend hasn’t changed, and therefore it is unlikely that this selling has any real longer-term influence.

For a look at all of today’s economic events, check out our economic calendar.

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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