US Dollar vs Japanese Yen Technical Analysis
It looks like we are going to continue to see more upward pressure as you get paid to hang on to this pair. And of course, the swap comes into the picture in order to add more reason to get long of this market. In general, I believe this is a situation where we are trying to build up the necessary momentum to break above the 155 yen level. And that of course is what we have seen cause a bit of a headache over the last couple of days. But once we break above 155 yen, it’ll be interesting to see how this pair behaves. I suspect it is yet another speed bump along the way to where we are going.
If we can continue to rally from here, it’s likely that we will go looking to the 157.50 yen level. Short-term pullbacks at this point in time continue to be buying opportunities with the 152 yen level underneath offering quite a bit of potential support as it was previous resistance. The 50-day EMA is racing toward that area as well, so I think it’s all worth paying close attention to the market is likely to continue to attract a lot of buy on the dip behavior and a lot of buy and hold behavior. The Bank of Japan is nowhere near being able to tighten monetary policy, so you still get paid quite a bit to hang on to this pair in the longer term. That’s really what’s going to matter.
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This article was originally posted on FX Empire
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