USD/JPY Forecast – USD Continues to Threaten Bigger Moves Against JPY

USD/JPY Forecast Video for 09-02-2024

US Dollar vs Japanese Yen Technical Analysis

The US dollar has broken out against the Japanese yen again during the trading session on Thursday, as the markets continue to pick on the Japanese yen in general. After all, it does make a certain amount of sense considering that the Bank of Japan is nowhere near tightening monetary policy and quite frankly, can’t do so with all of the massive amount of debt that the Japanese have anyways.

So with that being the case, I think you’ve got a situation where you just simply look at this as an opportunity to take advantage of the interest rate differential as you do get paid to hold both, the US dollar and any other currency against the Japanese yen that I can think of off the top of my head. The interest rate differential will continue to be a major driver and therefore, until the Bank of Japan changes its plans, I just don’t see how you could sell this pair.

Furthermore, even though the Federal Reserve is likely to cut rates in 2024, they are light years away from being anywhere near the Bank of Japan’s level. So at this point, it does make sense that this pair continues to go higher. I think eventually we go looking toward the 152 yen level, which of course was the swing high and then perhaps even higher than that given enough time.

Underneath we have the 50 day EMA offering quite a bit of support and that’s an area that I think buyers will be looking to take advantage of cheap dollars if they get the opportunity. Underneath there we have the 145 yen level which then is backed up by the 200 day EMA, that being said I don’t think we get support levels.

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