USD/JPY Forecast Video for 29-01-2024
US Dollar vs Japanese Yen Technical Analysis
The US dollar has rallied initially during the trading session on Friday against the Japanese yen as the 147.33 level is an area that has offered support and I think this last week has shown us just how. After all, this is a scenario where we have a lot of upward trajectory due to the fact that the interest rate differential between the two central banks remains very wide.
The Bank of Japan recently had an interest rate decision and statement where they chose not to sound too tight or too aggressive in tightening monetary policies. So really at this point in time, it just means that they can’t do anything and without actually admitting it, they’ve told the market that. Pull backs at this point in time continue to offer support at 147.33, but also the 50 day EMA and the 145 yen level. On the upside, if we can break above the 149 yen level, then it opens up a move to the 149.80 yen level and then eventually the 152 region. That’s where we recently peaked, and I think it does make a certain amount of sense that we try to get there again based on “market memory” going forward.
Remember you continued to get paid holding on to this pair and I think that will be the big driver of where we go next. I also use this chart as a secondary indicator with other currency pairs, such as the British pound against the Japanese yen, the New Zealand dollar against the Japanese yen, etc. This pair gives you an idea of what the strength or weakness of the Japanese yen is currently as most things are measured in dollars overall in general. This remains a buy on the dip type of market, and I’m going to go ahead and continue to buy those dips as it gives us plenty of value.
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This article was originally posted on FX Empire
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