Yahoo Finance USD/JPY Weekly Price Forecast – US Dollar Continues to See Strength Against the Yen
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar has rallied again during the previous week against the Japanese yen, reaching toward the ¥155 level. This is a market that’s been very noisy for the week, but it’s worth noting that every time we have fallen and there’s been a couple of times this week, buyers have come in to pick it up.
The ¥155 level above is a significant barrier from a psychological standpoint, but longer term projections of this pair reach ¥170. So therefore, I like the idea of buying short term pullbacks in order to take advantage of the strength. And of course, the fact that I get paid to hang on to this pair at the end of every day is a positive swap. The Bank of Japan can’t really do anything about the nature of the markets and the interest rate differentials. So even if they were to intervene, it would only offer yet another area I’d be a buyer of on a break above the ¥155 level. I believe that the next target is going to be ¥157.
I have no interest in shorting this market. Quite frankly, it would take the Federal Reserve changing its monetary policy to even consider that in. Although they are expected to cut down the road, that date continues to get pushed back. So, I think the US dollar is probably going to be strong for a while. The Japanese yen, on the other hand, there’s no rate hike coming to save it, so this is going to be a painful time for the Japanese currency.
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This article was originally posted on FX Empire
