USD/JPY Forecast Video for 12-02-2024
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar initially pulled back just a bit during the course of the trading week only to turn around and show signs of life. It looks like we are trying to get to the 149.80 Yen level above, which is an area that I think has offered resistance in the past. If we were to break above there, that obviously is a very bullish side.
If we can break above there, then the market could go looking to the 152 yen level. Short-term pullbacks continue to see support at the 147.33 yen level. And then we have the bottom of the previous weekly candlestick that forms a hammer. Underneath there, we then have the 145 yen level, which is a major support level. This is an area that I think a lot of people would jump in trying to pick up a bit of value in this market.
Ultimately, I think we’ve got a scenario where traders continue to see short-term buying opportunities. I do believe that over the longer term, the US dollar will break out above the recent high as this ascending triangle continues to exert its pressure on the upside. The Bank of Japan is nowhere near tightening monetary policy, and even though the Federal Reserve is likely to cut rates in 2024, they have postponed it, it appears, and therefore it keeps the positive swap in this pair for holding it.
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This article was originally posted on FX Empire