Yen Crosses Forecasts – Rising US Rates and Oil Surge Punish Japanese Yen

USD/JPY Technical Analysis

The US dollar continues to rally against the Japanese Yen as the interest rate differential widened a bit early during the session, with interest rates in the United States climbing again. Breaking above the 163 Yen level is a psychological victory, and it certainly looks like the buyers are willing to jump into this market still. There have been a couple of central bank interventions in the past, but all that’s been done is to offer cheap US dollars.

This uptrend is very strong. It’s very much intact. There is a little bit of intervention concern out there, but at the end of the day, it’s failed at least once, if not twice, and one would have to think that it’s a market that has stated clearly what it desires.

CAD/JPY Technical Analysis

The Canadian dollar is rising against the Japanese Yen, clearing a significant area in the form of 116 Yen. This is an area that’s been important a couple of times. The next major swing high is at the 117.50 Yen level. With oil rising, that does help the Canadian dollar in general, and this is a pair that seems to be very sensitive to that particular commodity, which makes sense considering that the Japanese import their oil; the Canadians, of course, export it.

AUD/JPY Technical Analysis

The Australian dollar is up a bit against the Japanese Yen as well, with the market looking very bullish and like it’s going to try at least to test the recent highs. The recent highs are at roughly 115 Yen. That’ll be an area that will be interesting to watch. Given enough time, traders will look at this through the prism of whether or not we can break to a fresh high again. If we can, that in theory should be a sign of momentum.

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