USD/JPY Forecast – US Dollar Continues to Look For a Jump in The Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially pulled back just a bit against the Japanese yen on Friday, but then turned around the show signs of life. By doing so, I think the market is likely to continue to see the 155 yen level as a gateway to bigger moves. If we can break above there, then I think the US dollar not only rallies, but I think it rallies somewhat hard without the wait and see. The sell-off in this pair has been overdone, and it is worth noting that we bounced directly from the 200-day EMA, which of course is an indicator that a lot of people will be paying close attention to.

With this, I am bullish. I also continue to pound home the idea you get paid to hold this pair. That doesn’t necessarily mean you have to go in with a huge position. Over time, it will add up as well. Now that we’ve had this pullback, you’ll have to take a look at a few possibilities, but right now, if you do a Fibonacci study, it’s worth noting that the 50%, almost the 50% Fibonacci retracement level was tested at the 200 day EMA, and now it looks like we are ready to continue to the upside. And with that being the case, I do like this pair, and I like it even more if we can get above the 155 yen level as it would show a continuation of momentum and the overall uptrend that we have seen for some time.

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