Category: Forex News, News

USD/JPY Forecast – US Dollar Continues to Grind Higher Against Yen

US Dollar vs Japanese Yen Technical Analysis

The U.S. Dollar continues to climb against the Japanese Yen as we head towards the FOMC meeting and the CPI numbers in America. At this point in time, the market is going to continue to be very noisy. And I do think that eventually we could break out to the upside. But right now, it looks like the 158 yen level is about as good as it gets. Obviously, after this session, we could see a complete change in attitude if the right combination of things happened. But right now, I think we’ve got a situation where any pullback has to be looked at as a potential buying opportunity.

This is especially true near the 155 yen level where the area had seen buyers previously and of course we have the 50-day EMA rapidly approaching. If we can break above the 158 yen level, then we could make a challenge for the 160 yen level which is where the Bank of Japan defended. Keep in mind that once we get through the FOMC meeting we do have a Bank of Japan meeting and press conference on Friday that could also throw more noise into this market.

Regardless, there is almost no scenario that makes sense to start shorting this pair. The Japanese are stuck with a massive debt load and will not be able to absorb anything close to a realistic interest rate to finance the spending of the last several decades. This pair is a one-way trade overall.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


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