Yahoo Finance USD/JPY Forecast – US Dollar Continues to Bounce Around The Yen
US Dollar vs Japanese Yen Technical Analysis
You can see that the U.S. dollar initially tried to rally overnight, but then turned around to show signs of hesitation. Quite frankly, this is due to members of the Bank of Japan pretending like they’re going to do something as they are closely monitoring currency fluctuations. They come out and say this every once in a while, and for that matter, occasionally will intervene. That ends up being a buying opportunity.
The Japanese have 0.1% for their interest rate, and therefore their currency is toast. If we can break above the 152 yen level, it’s likely that the US dollar will go much higher and eventually go looking to the 155 yen level. Underneath we have the 150 yen level, which of course is an area that is a large, round, psychologically significant figure. We also have the 50 day EMA racing towards that level, so that adds even more technical support.
Quite frankly, this is a market that has a lot of underlying pressure on it. And although the Federal Reserve is likely to cut rates later this year, you can still drive a semi-truck between interest rate differentials. So, with that being the case, I own this pair. I own a lot of yen related pairs. And at this point in time, I just collect interest at the end of every day.
Why overcomplicate things? Short-term pullbacks continue to have buying opportunities appear for most traders. As far as shorting is concerned, it just isn’t worth it as the uptrend is so vicious at this point, and therefore it is hard to fight that kind of momentum. I believe that this market will continue to go higher over the longer term, so therefore its not a market worth fighting at this point.
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This article was originally posted on FX Empire
