USD/JPY Forecast – US Dollar Continues to See Strength Over Yen

Christopher Lewis
Published: Feb 12, 2024, 15:13 GMT+00:00

The USD/JPY continues to see a lot of strength overall, and the market looks as if it is going to try to get to the top of the recent move.

US Dollars, FX Empire

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USD/JPY Forecast Video for 13-02-2024

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially fell slightly against the Japanese yen on Monday but has turned around to show signs of life again as a market that is at least trying to rally enough to get to the 149.80 level. If we can break above that level, then it opens up a move to the 152 level longer term. This is an area that has been important previously, as a lot of people sold the market, and therefore this is a target in the near future.

Short-term pullbacks will continue to see plenty of value hunters, especially with the 147.33 level underneath, offering support, and of course, the 50-day EMA underneath there. With that being said, this is a market where I think you are going to be paying a lot of attention to the interest rate situation in America, the bond market, etc. But at the same time, you also have to keep an eye on the Bank of Japan, which quite frankly, cannot do anything to tighten monetary policy with the massive amount of debt that Japan currently has.

With that being said, and the fact that the Federal Reserve seemingly is pushing back interest rate cuts later in the year, it does make a lot of sense that we continue to go higher. In general, I think that you have no real argument to short this pair, at least not anytime soon, and therefore, you should probably look at dips in this market as they continue to offer value, and that value of course is something that traders will take quite a bit of a shine to. I have no interest in shorting because I do think that any negative day more likely than not, will invite more buying and of course, you have to keep in mind that you do get paid to hang on to this currency at the end of the day via swap. So in the end, it’s a longer term trend to the upside that I see here.

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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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