USD/JPY Forecast – US Dollar Continues to Pressure the Yen Amidst Breakout

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US Dollar vs Japanese Yen Technical Analysis

The U.S. dollar has rallied to break above the ¥155 level during the trading session on Wednesday. But it looks at this point in time, we may be heading into a bit of choppiness. That makes sense. This has been a major barrier, but if and when we break through it, it could very well be like how it was when we broke above the ¥152 level.

We may see a massive squeeze. Keep in mind, Friday is the Bank of Japan interest rate decision, press conference and meeting. So, we could see a lot of noise on Friday. And I think there might be some concerns heading into that. So, whether or not we can follow through with it, this move remains to be seen. If we can get through all that, then I really don’t see what would keep this market from going to the ¥157 level after that, then we could be talking about ¥160.

Pullbacks should see plenty of support at the ¥154 level, as well as the ¥152 level, where we now start to see the 50 day EMA come into the picture. The interest rate differential between these two economies is wide enough to drive a truck through. And that, of course, is going to be the main driver of what happens in the longer term.

Any intervention at this point in time will only end up being a buying opportunity for those who are more long term minded, because, quite frankly, the central banks won’t be able to change what happens in the markets from a long term standpoint without changing their monetary policies.

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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