USD/JPY Forecast – US Dollar Continues to See Upward Pressure
US Dollar vs Japanese Yen Technical Analysis
Taking a look at the US dollar Japanese yen pair, it’s not a huge surprise to see that we’re just doing nothing because quite frankly, we’re at the highs, but there isn’t a whole lot out there in the realm of economic announcements to get the market moving.
The fact that we’re just hanging out in this area though, does suggest that there is plenty of strength and if we do get a pullback, it’ll end up being a buying opportunity. The interest rate differential of course, favors the United States as although the Bank of Japan recently raised interest rates, it is still only one tenth of a percent. In other words, you could drive a truck through the interest rate differential of these two currencies.
You get paid to hang on to this pair, and I think that’s what most people are paying attention to. I know I certainly am, and therefore, I’m just waiting to see if we can break above the crucial 152 yen level. If we can, then I think it opens up a move to the 155 yen level given enough time. Short-term pullbacks continue to be buying opportunities, with the 150 yen level underneath being the most obvious round figure support level and then after that, you have the 50 day EMA.
Either way, I have no interest in shorting this market, and when you look at it through the longer term, it’s just a strong uptrend. That’s all it is. You don’t need to overcomplicate it. You just need to trade in the same direction. Yes, there might be the occasional pullback here and there, and there are people out there talking about the Federal Reserve cutting later this year, but that’s already a known quantity, and we’re still basically at massive swing highs. That says more than I can.
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This article was originally posted on FX Empire
