USD/JPY Forecast – USD Continues to Rally Against Yen

Christopher Lewis
Published: Apr 3, 2024, 13:47 UTC

The USD/JPY pair continues to look very strong, and therefore it looks as if the 152 yen level could be broken soon. With this, I am a buyer of this pair still.

In this article:

US Dollar vs Japanese Yen Technical Analysis

You can see that the dollar/yen started to rally a bit during the trading session on Wednesday as we continue to threaten the 152 yen level. This is an area that I think a lot of people are going to be paying attention to. And if we can break above there, it’s likely that market participants will really start to rush in in more of a fear of missing out trade. I do think that ultimately this is exactly what happens because quite frankly, the Bank of Japan raising interest rates to zero really isn’t helping much.

With that being the case, I think it’s only a matter of time before we get that forceful breakout and once we break above the 152 yen level, I am more than willing to start buying even more than I already have, but short-term pullbacks should continue to be buying opportunities in this market and that’s how you have to look at it. Ultimately, this is a scenario where it’s a one-way trade due to the fact that the interest rate differential gets you paid at the end of every session.

The 150 yen level underneath is a large round number that a lot of people will be paying attention to. And also where the 50 day EMA is starting to race towards. At this point in time, I do think it’s probably only a matter of time before value hunters come back in and try to pick this market up. Regardless, I do think that once we break the 152 yen level, we could see this market go looking to the 155 yen level.

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.

Did you find this article useful?