Yahoo Finance USD/JPY Forecast – US Dollar Continues to Look Higher Against Yen
US Dollar vs Japanese Yen Technical Analysis
The U.S. Dollar has rallied during the trading session on Monday after initially gapping lower against the Japanese yen. We have seen a complete turnaround and at this point in time, it is worth noting that there are a lot of traders that are going to be paying close attention to the 50 day EMA, as well as the 152 yen level, keep in mind that a lot of the noise that we’ve seen recently has been due to fears of the Bank of Japan intervening, and perhaps the fact that they may have actually done it.
But at this point, one has to keep in mind that the interest rate differential still pays you to be long of the market. So, with that being the case, it’s very difficult to get negative on this market from a longer term standpoint. With this, I am very bullish of this market, but I also recognize that we have a situation where traders will have to be aware of the fact that there could be a significant amount of volatility going forward.
Nonetheless, I think this is a situation where we are going to continue to be buy on the dip, and recognize that institutional traders, of course, will be interested in taking advantage of the swap at the end of the day. I do think that we will reach the highs again. I don’t necessarily think it’s the easiest thing to do, but it clearly is not a market you should be shorting, especially as 152 yen previously had been resistance, and now market memory should dictate that it’s support.
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This article was originally posted on FX Empire
