USD/JPY Forecast – US Dollar Continues to Look Strong

USD/JPY Forecast Video for 15-02-2024

US Dollar vs Japanese Yen Technical Analysis

The US dollar pulled back slightly against the Japanese yen during the trading session on Wednesday, but it does look like we are trying to find a little bit of strength. At this point, I think the 149.80 level is a significant support level. That is an area that previously had been resistant. So, I think it is probably only a matter of time before buyers would jump in and try to defend it. If we were to break down below there, then the 50 day EMA comes into the picture right at the 147.33 level.

In general, this is a market that continues to be very noisy, but certainly bullish as the Bank of Japan cannot do anything to tighten monetary policy with the massive amount of debt that Japan finds itself in. On the other side of the equation, we have the Federal Reserve, which, although likely to cut rates in 2024, probably has a longer timeline than most market participants had thought for a while. Because of this, I think you have a situation where you have to look at this through a value proposition and every time it dips, you have to be a buyer.

Ultimately, I think that we go looking to the 152 yen level above and breaking above that then opens up the possibility of a much bigger move. In general, I think this is a market that will continue to be very choppy and noisy, but it is a one-way trade. You get paid at the end of every day to hold on to this pair, so that does make a certain amount of sense to think of it more or less as an investment. After all, it does throw cash off at the end of the day that longer-term traders like. I have no interest in shorting this pair, but if we broke down below the 145 yen level, which would ostensibly be the same thing as breaking down below the 200-day EMA, I’d have to seriously reconsider the overall trend.

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