USD/JPY Weekly Forecast – The US Dollar Continues to Fight

USD/JPY Forecast Video for 29-01-2024

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar initially fell during the course of the trading week to break down below the 147.33 yen level only to turn around and show signs of life again. By forming the hammer the way we have, it does suggest that we continue to be more or less a buy on the dip type of scenario.

If we can break above the high of the week for not only this week but the week before, then we could go looking to the 149.80 yen level, and then eventually the high is at the 152 yen level. Any pullback at this point in time continues to attract buyers trying to pick up a little bit of value, and I think that the 145 yen level is a massive floor in this market.

There’s also a trend line underneath there, but really at this point, I think we are running to a little bit of exhaustion and therefore these pullbacks probably make some sense and can bring in a certain amount of value hunting. I have no interest in shorting this market, at least not anytime soon, and that is going to be the way forward for me. You do get paid to hang on to this market through the swap at the end of the day.

So, therefore, with the interest rate differential being as wide as it is still, it makes a lot of sense for buyers to be attracted to. I believe that longer-term traders continue to hold onto this pair and that of course will help us who are just trying to swing trade occasionally.

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