USD/JPY Forecast – US Dollar Continues to Look Strong Against Yen

US Dollar vs Japanese Yen Technical Analysis

US dollar continues to look like it’s going to break out against the Japanese yen. The US dollar has rallied just a bit during the trading session early hours on Monday, as the Japanese yen continues to struggle. The ¥152 above is a major resistance barrier. If we were to break above there, then the market could eventually go much higher as it is an area that has been very difficult to get through.

Ultimately, this is a situation where buyers on dips continue to be a major driver. The ¥150 level underneath is going to be a large round number, with the 50 day EMA raising towards it offering plenty of support. When I look at this chart, this just simply looks like a market that’s trying to take its time and to grind away to the upside and eventually break out, or if and when it does, then I think you’ve got a situation where traders will look at this and try to jump into the FOMO trade.

After all, this is a market that I think will continue to watch the interest rate differential, which is a mile wide right now, and traders will just simply continue to collect at the end of every day. I know I do. So, once we get through this ¥152 level, then I will be adding to my position and aiming for at least 155. That being said, it is hard to imagine that the market will stop there, as the interest rate differential will continue to be a major influence.

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