US Dollar vs Japanese Yen Technical Analysis

The US dollar initially fell against the Japanese yen during the trading session on Thursday, but at this point, the 155 yen level continues to be massive support and we have seen that play out Tuesday, Wednesday, and Thursday. The 50 day EMA is hanging around that area and that is a technical indicator that a lot of people will be paying close attention to anyway.

Now keep in mind that we have the jobs number coming out of the United States on Friday, and that will cause massive amounts of volatility, I think at this point, anytime this pair pulls back, you have to be looking at it as a buying opportunity. The 158 yen level above is a massive barrier that the Bank of Japan has put in place due to their intervention. But really at this point in time, if we break above there, and I do think we will because of the interest rate differential, this pair will eventually go looking to the 160 yen level.

If we break down below the 50 day EMA, then the 152 yen level is a massive support level and then eventually the 150 yen level where the 200 day EMA is and basically where I defined the overall trend. So, with this, I’m a buyer of dips and quite frankly, I hope it falls so I can buy more. This market should continue to be in an uptrend for the longer term, as we have seen a lot of attempts to break it down, only to watch them fail.

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This article was originally posted on FX Empire

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