USD/JPY Weekly Price Forecast – US Dollar Continues to Pressure The Yen

Christopher Lewis
Published: Apr 5, 2024, 15:30 GMT+00:00

The US Dollar has initially fallen during the week, only to turn right back around and show signs of strength yet again.

In this article:

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar initially fell during the week, but overall has stayed very stable as we continue to reach the ¥152 level. The ¥152 level is an area that a lot of people will be paying close attention to, as it has been like a major barrier.

You can clearly see on the weekly chart that we are forming a massive ascending triangle, and the ¥152 level certainly looks like an area that’s being defended, perhaps behind the scenes by the Bank of Japan itself. They are known to do stealth interventions from time to time, and it is suspicious that all of the sudden we can’t break above this area.

Nonetheless, it is a delaying tactic. It’s not something that can change the overall trend. And therefore, if we get some type of massive sell off, I have no qualms whatsoever about buying more of this pair. Underneath the ¥150 level is an area that could offer support, and even underneath there, I think you have to look at the ¥147 level as a potential support level.

Also, when you look at the weekly chart, it really shows just how bullish and relentless the drive has been, with the exception of a couple of weeks here and there. I’m a buyer of dips. I have no interest whatsoever in trying to short this market, as the interest rate differential by itself would make that somewhat impossible over the longer-term. The market continues to offer buying opportunities on each and every dip from what I can see at the moment.

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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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