US Dollar vs Japanese Yen Technical Analysis
It looks like we will continue to see more upward pressure as you get paid to hold this pair. And of course, the trade comes into the picture to add even more reason to go long this market. Overall, I believe this is a situation where we are trying to build the necessary momentum to break above the 155 yen level. And of course that’s what we’ve seen cause a bit of a headache in recent days. But once we get above 155 yen, it will be interesting to see how this pair behaves. I guess it’s another speed bump on the way to where we’re going.
If we can continue to rise from here, we will likely be looking at the 157.50 yen level. Short-term pullbacks continue to provide buying opportunities at this time, with the 152 yen level below offering quite a bit of potential support as it previously provided resistance. The 50-day EMA is also racing towards that area, so I think it’s all worth paying close attention to as the market is likely to continue to attract a lot of buy-on-dip behavior and a lot of buy-and-hold behavior . The Bank of Japan is nowhere near the ability to tighten monetary policy, so you’re still getting paid quite a bit to hold this pair for the longer term. That’s really what’s going to matter.
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This article was originally posted on FX Empire
