US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar has broken out during the course of the trading week as the ¥152 level has now been smashed through. At this point, it’s all about the interest rate differential and getting paid at the end of every day. This is something that I have subscribed to for a while, and we did spend quite a bit of time just grinding just below the ¥152 level.
So, once we broke above there, that of course was a very big deal. That being said, I think any short term pullback at this point in time will almost certainly be bought into. And I think traders will continue to look at this as a major breakthrough. Ultimately, if we do continue to go higher, the next target is probably going to be somewhere near the ¥155 level.
And I think at this point, it’s likely that the market, even if it breaks below the ¥152 level, probably opens up the possibility of even more support at ¥150, assuming we even get down there. The Bank of Japan has recently had to throw in the towel, essentially, as although they raised rates, it was only to zero. At the same time, you have a situation where the Federal Reserve is likely to have to hang on to tighter rates for a while, and that continues to get you paid at the end of every session. I like buying dips and I have been adding as of late. I believe that given enough time, we could see this market continue to pay you over the longer-term.
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This article was originally posted on FX Empire
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