USD/JPY Forecast – US Dollar Continues to Reach Higher Against The Yen

US Dollar vs Japanese Yen Technical Analysis

The U.S. Dollar has initially rallied during the trading session on Thursday against the Japanese yen again, as we see quite a bit of upward pressure overall. At this point I think we are in the midst of trying to find some type of bottom in this pair and we may have actually found it directly on an uptrend line just above the 140 yen level. Since then, although it’s been noisy, we have rallied about 680 pips so obviously something that matters. If we do pull back from here, I suspect that will continue to end up being a bit of a buying opportunity, and I will treat it as such.

I will look for opportunities to get long again on short-term pullbacks that show a bit of a bounce to the upside. If we were to break above the 147.50 yen level, then I think it opens up a move to the 200 day EMA followed by the 150 yen level, anything above there then has a market going much higher.

I have no interest in shorting this pair anytime soon, and I do believe that the interest rate differential will continue to be a major factor as the Bank of Japan has chosen to sit still at its latest interest rate decision and ultimately suggest afterward that they can’t really tighten monetary policy anytime soon going forward. So, even with the Federal Reserve cutting rates, the interest rate differential still pays you at the end of every day.

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