Yahoo Finance USD/JPY Forecast – US Dollar Continues to Grind Higher Against Yen
US Dollar vs Japanese Yen Technical Analysis
The US dollar initially rallied a bit against the Japanese yen, but we have given back a little bit of the gains. Ultimately, this is a market that I think continues to see a lot of bullish pressure and may have to take a little bit of a break at the moment just due to the fact that it might be a little bit exhausted at the moment. In general, you have to look at the 160 yen level underneath as a major barrier to any type of massive selling pressure. And with that being the case, I think this is a situation where you’re just waiting for a little bit of a drop in order to start to pick things up.
Any sell-off at this point in time more than likely will allow value hunters to come in. Remember the interest rate differential continues to favor the US dollar quite heavily and as a result I do think that traders will continue to hold this pair but that doesn’t necessarily mean to go straight up in the air. Furthermore, Thursday is Independence Day in America, so the next day or two may lack a bit of liquidity, and that might be part of what you’re seeing here as well.
Either way, there’s pretty much no way to short this market, and ultimately any pullback at this point in time has to be looked at with suspicion because quite frankly, nobody wants to own the Japanese yen and you certainly don’t want to pay for the privilege of doing so. We just may have to do a little bit of base building here.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
