Category: Forex News, News

USD/JPY Forecast Today 09/7: Buyers Hold Strong (Video)

By Published On: July 9, 20241.8 min readViews: 710 Comments on USD/JPY Forecast Today 09/7: Buyers Hold Strong (Video)

  • In my daily analysis of the dollar against the Japanese yen, it’s become increasingly obvious that there are plenty of buyers underneath just waiting to happen and take this market on.
  • The 160 yen level is an area that’s been important multiple times and I just don’t see how it’s not again.
  • And in fact, we’ve already seen buyers come in and defend that level.

With that being the case, I think you’ve got a situation where you continue to buy the dips and that does make a lot of sense. After all the interest rate differential was wide enough to drive a truck through. As long as that’s the case, there’s no point in trying to short this pair. There have been some larger institutions that thought the Bank of Japan would turn things around and they have gotten broken. If we break down below the 160 yen level, then it’s possible that we could go to the 158 yen level underneath which is also not only backed up by the 50-day EMA but an area we’ve seen a lot of noise at previously.

We Should Go Higher

In general, this is a market that I think given enough time does go higher, perhaps an attempt to get to 165 yen is a very real possibility. You get paid to hang on to this USD/JPY pair and that’s the biggest takeaway here. I continue to do so myself and anytime we dip, I’m more than willing to add to that position, not take away from it. The Bank of Japan can’t do anything with interest rates.

Come to my page!

The debt is just simply far too heavy in Japan to think of cutting rates with at least any significance. While the Federal Reserve, even if they do cut between now and the end of the year, it’s only going to be for 25 basis points, which of course is hardly enough to make a huge difference.

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