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USD/JPY Weekly Price Forecast – US Dollar Sees Another Positive Week

By:
Christopher Lewis
Published: Jun 21, 2024, 16:58 GMT+00:00

The US dollar continues to see a lot of upward pressure against the Japanese yen, as we have seen the markets come to the realization that the Federal Reserve is nowhere near cutting rates, while the Bank of Japan has no choice but to keep loose monetary policy going.

In this article:

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has rallied rather significantly during the course of the week as we continue to see the Japanese yen implode. After all, the Bank of Japan is in a situation where it has to keep interest rates low and despite the occasional jaw boning or perhaps even the occasional intervention, the reality is that this is all about the Federal Reserve. The Federal Reserve, of course, is likely to keep things tight and maybe, and this is a huge maybe, cut rates once this year only.

If that’s going to be the case, then I think the interest rate differential will continue to attract a lot of traders into this market. I have been long of almost every yen denominated pair for what seems like a lifetime, but quite frankly the fundamentals are just not changing. Yes, we have had intervention, but really it ended up being a blip on the radar and we are in the realm of perhaps taking out the top of that candlestick.

If we break the 160 yen level, that will be a huge test. Even if they were to come in and do a little bit of intervention, I’ll just buy it at lower levels. I get paid at the end of every day to hold this market, and I think that’s what most people out there are focusing on. As long as inflation’s an issue in the United States, the US dollar’s going to swallow a lot of currencies. And if you look around to Asia, because I do some work with the exotics, other currencies like the Singapore dollar, the Thai baht, the Chinese yuan, Korean won, they all are suffering at the hands of the greenback so it’s hard to believe that the yen would be any different.

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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