USD/JPY Weekly Price Forecast – US Dollar Continues to Pummel Japanese Yen

USD/JPY Forecast Video for 19-02-2024

US Dollar vs Japanese Yen Weekly Technical Analysis

The dollar has risen against the Japanese yen again during the week as we have broken the 150 yen level during trading on Friday. It now looks as if we are going to be doing everything we can to test the 152 yen level, which is an area that previously had been rather significant resistance. This is a level that has been tested a couple of times, and has shown itself to be extraordinarily resilient.

Breaking above that level allows the market to go looking to the 155 yen level and perhaps even further than that. It does make a certain amount of sense considering that the swap is positive, and the trend is most certainly just as positive. So at this point in time, it doesn’t take a lot of imagination to see a potential ascending triangle being formed and perhaps being broken out of.

If that’s the case, it’s going to spell a lot of trouble for the Japanese yen as we could see the market race 22, maybe even 23 handles higher depending on how you measure the triangle. I’m not necessarily calling for that, but I do think that we break to a fresh new high given enough time. And I have no interest in shorting this pair, at least not until we break down below the 145 yen level. And it’s only then that I would have that conversation. And still, at that point, we’re not technically in a downtrend. Obviously, the US dollar continues to win this argument.

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