USD/JPY Weekly Price Forecast – US Dollar Continues to Grind Higher Against Yen

Christopher Lewis
Updated: Jun 2, 2024, 10:00 GMT+00:00

The US Dollar continues to take advantage of the Yen weakness as we are now more than likely going to continue to look toward the recent highs as a target. With the Bank of Japan stuck, it seems like a bit of a foregone conclusion.

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US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has rallied pretty significantly during the course of the trading week against the Japanese yen. We formed a hammer during the weekly candlestick of the previous week, so now it looks like it’s just simply a continuation play. After that intervention and a couple of weeks ago, the Bank of Japan may have intervened.

But quite frankly, you have to wonder whether or not they didn’t learn their lesson. They can’t have an ultra-loose monetary policy and a strong currency at the same time. The market will just simply overwhelm them, and that’s essentially what’s going on right now. I suspect it’s probably only a matter of time before we start looking to the ¥160 level above, which is my target.

Short term pullbacks, I think, continue to see plenty of buyers, especially near the ¥155 level. If we break down below there then the ¥152 level would be potential support. But I think at this point you can only be looking in one direction, which of course makes quite a bit of sense considering that you get paid to hang on to this pair at the end of every day.

Ultimately, I just don’t see a scenario where you’re a seller and wouldn’t even contemplate doing so until we broke down below the ¥150 level, at the very least. And even then, I’d have to take a look at the fundamentals. So, this is a pair that is steady as she goes. You just hang on to your position. You get paid at the end of every day via swap and also appreciate price appreciation.

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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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