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USD/JPY Weekly Price Forecast – More of The Same This Past Week

By:
Christopher Lewis
Published: Mar 1, 2024, 14:46 UTC

The US dollar pulled back initially against the Japanese yen this week, only to find buyers on that dip to find value in that move.

In this article:

US Dollar vs Japanese Yen Weekly Technical Analysis

Take a look at the dollar against the yen and you can see that we initially pulled back a bit during the course of the trading week only to turn around and rally again. So, with that being the case, I think you’ve got a situation where traders will continue to try to push this towards the 152 yen level, an area that has been resistant a couple of times in the past. Because of this, I think you have to look at that as an area that might be a bit of a headache, but it most certainly will be a target.

The interest rate differential continues to favor the US dollar and I think that’s going to continue to be the story here as far as traders are concerned as you get paid to hang on to the pair over the longer term. The 149.8 level is an area that has been supported right along with the 147.33 area. So with all of that being said, I like buying dips because I do think eventually we break above 152. Then, at that point, the 155 yen level would be targeted.

That being said, I don’t know that it would be a quick move, and I think that it would take a certain amount of momentum to finally reach the 155 level. However, I also think it’s very likely over the longer term. That being said, I prefer to buy dips going forward, and look at any pullback as a potential value opportunity, at least until central banks around the world change their overall attitude.

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.

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