US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar initially pulled back a bit against the Japanese yen, but has since broken through the 160 yen level. The 160 yen level is of course a big round psychologically significant number and an area that I think a lot of people will pay attention to. Market memory comes into play and we could see buyers there, but even if we pull back there, I think the market has enough support around the 158 yen level, possibly even the 155 yen level.
All things being equal, this is a market that I think will continue to rise, but we are a bit stretched, so don’t be surprised if there is a bit of a return. This return should be seen as a buying opportunity, because the interest rate difference between the two central banks will remain quite large. Remember, Japan really can’t do anything with its monetary policy at this point, while the Federal Reserve will likely remain at this level.
So, with that being said, I think you have a situation where you keep buying when there are dips. And I think given enough time, we’re still going to see the Japanese yen lose strength against most currencies, not just the green bank, but also with high interest rates in the United States. I think that’s strong. If you liked the video, give me a thumbs up and make sure you subscribe.
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This article was originally posted on FX Empire
