USD/JPY Forecast – US Dollar Finds Buyers on Short-term Pullback

USD/JPY Forecast Video for 24.11.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially fell during the trading session on Thursday, as we continue to see a lot of noisy behavior, but at the end of the day the interest rate differential continues to see the US dollar much more attractive than the Japanese yen. Furthermore, you also have to understand the fact that the bank of Japan continues to try to jawbone the market, but the reality is that the Japanese cannot do anything to raise interest rates of any consequence, due to the fact that the Japanese government is buried in debt, and the higher interest rates would cause major issues.

On the other hand, you have the Federal Reserve which is going to keep its monetary policy type for quite some time, and the interest rate differential will continue to favor the dollar as far as the eye can see. The 50-Day EMA is an area where we seen buyers jumping during the day, but you should also keep in mind that the Thursday session was also Thanksgiving in the United States, so only certain parts of the world were open for trading. We’ve been in an uptrend for quite some time, so the fact that there would be buyers underneath is not a huge surprise and probably will continue to be the way going forward.

Above, we have the ¥150 level that could offer a significant amount of resistance, as it is a large, round, psychologically significant figure. However, we have sliced through that a couple of times, so I think it is an area that we could break through without a massive push. The ¥152 level above is a significant resistance. The people will be paying close attention to, and therefore I think you need to see the market break above there in order to continue going higher.

It’s worth noting that the ¥142.80 level underneath offered massive support yet again, and the fact that we formed a perfect hammer there on Tuesday was the first sign that perhaps we were going to recover. Remember, you still get paid to hang on to this pair every day, and I do think the people will continue to look at it through that prism. I have no interest in shorting this market anytime soon.

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