USD/JPY Forecast – US Dollar Pulls Back Early Against The Japanese Yen

Christopher Lewis
Published: Feb 29, 2024, 13:48 UTC

The US dollar is pulled back early during the trading session on Thursday against the Japanese yen, as we wait to see whether or not value hunters will come back into the picture as they have so many times on each dip.

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US Dollar vs Japanese Yen Technical Analysis

Taking a look at the US dollar against the Japanese yen, the US dollar pulled back fairly significantly during the trading session on Thursday, ahead of the crucial PCE numbers. The market is likely to continue to be very noisy regardless, mainly due to the fact that it has been in such a huge uptrend for so long. In fact, this is one of the more reliable markets that I have followed over the last 2 years. Whether or not that remains will remain to be seen, but as things stand right now, I do think that eventually the overall uptrend will continue to reassert itself through any serious issues.

All things being equal, it looks like the 150 yen level is an area where a lot of people are going to be focusing on, mainly due to the fact that the market has been not only influenced by a large round figure, but the fact that previously it had quite a bit of resistance previously in this general vicinity. So it doesn’t make a huge surprise to me that any pullback will more likely than not find plenty of buyers. The 50-day EMA sits below, and so does the 147.33 yen level, both of which I think offer quite a bit of support. And I do think that there will be a lot of people willing to jump in and take advantage of it.

If we were to break down below all of that, then we could test the 200-day EMA, but that seems very unlikely to be a major issue at this moment. The PCE numbers will come out in America, and that obviously will be paid close attention to as it is the Federal Reserve’s major and most favorite indication on inflation in America. That being said, even if we do get some type of plunge, I think it’s only a matter of time before we turn right back around and find buyers due to the massive interest rate differential.

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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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