Yahoo Finance USD/JPY Forecast – US Dollar Continues to Find Buyers on Dips
US Dollar vs Japanese Yen Technical Analysis
The US dollar initially fell significantly during the course of the early hours on Friday, as the Israeli strike had people running for safety in the form of the Japanese yen. That being said, a little time has gone by and we now understand that the massive strike wasn’t so massive and it was more or less a situation where it was very restrained and it doesn’t look likely to escalate things out of control. So, with that, we got rid of the buy the yen mentality, and now we’re back to the interest rate differential between these two currencies, which has been the major driver for some time.
Just above we have the ¥155 level, an area that I think is a bit of a barrier. But considering that every time we pull back, buyers are willing to step in and pick this pair up, including myself, I think it’s probably only a matter of time before we break through their longer term projected exchange rate. But most think that a move to the 165, possibly even the ¥170 level is possible.
That’s especially true the longer it takes for the Federal Reserve to start cutting rates. And right now, they continually look as if they are going to push that back. With this being said, as long as we can stay above the 50 day EMA, this remains a buy on the dip market, which I have been doing for some time now, as I get paid at the end of every session.
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This article was originally posted on FX Empire
