USD/JPY Weekly Price Forecast – US Dollar Continues to Look Strong

US Dollar vs Japanese Yen Weekly Technical Analysis

You can see that the US dollar has rallied during the majority of the trading week and it looks like we are getting fairly close to breaking out. The 152 yen level is an area that I am paying close attention to because it has been such a hard ceiling. That being said, it certainly looks as if we are forming a massive ascending triangle and I think it’s probably only a matter of time before we rocket through the resistance and go much higher, the question of course is when does it happen?

Well, we don’t really know but clearly buyers are becoming more and more aggressive over the long term the Bank of Japan raised rates to a paltry tenth of a percent and at this point in time, even though the Federal Reserve is likely to cut rates you still get paid to hang on to this pair for the long term and I think that’s exactly what people are going to do. I have no interest in shorting this market and I do think that ultimately each dip will end up being a nice buying opportunity. If we can break above the 152 yen level, then I think we have a real shot of going to the 155 yen level above, which is the next large psychologically important figure.

Remember, although this pair hasn’t been at these levels for years, this is not an all-time high. So, the US dollar can function quite easily against the Japanese yen at much higher levels. The Bank of Japan has raised those rates, but quite frankly, it can’t do much more because of the indebted nature of the Japanese nation.

For a look at all of today’s economic events, check out our economic calendar.