PWSHub News

USD/JPY Forecast – US Dollar Continues to See Strength Over Yen

USD/JPY Forecast Video for 13-02-2024

US Dollar vs Japanese Yen Technical Analysis

The US dollar initially fell slightly against the Japanese yen on Monday but has turned around to show signs of life again as a market that is at least trying to rally enough to get to the 149.80 level. If we can break above that level, then it opens up a move to the 152 level longer term. This is an area that has been important previously, as a lot of people sold the market, and therefore this is a target in the near future.

Short-term pullbacks will continue to see plenty of value hunters, especially with the 147.33 level underneath, offering support, and of course, the 50-day EMA underneath there. With that being said, this is a market where I think you are going to be paying a lot of attention to the interest rate situation in America, the bond market, etc. But at the same time, you also have to keep an eye on the Bank of Japan, which quite frankly, cannot do anything to tighten monetary policy with the massive amount of debt that Japan currently has.

With that being said, and the fact that the Federal Reserve seemingly is pushing back interest rate cuts later in the year, it does make a lot of sense that we continue to go higher. In general, I think that you have no real argument to short this pair, at least not anytime soon, and therefore, you should probably look at dips in this market as they continue to offer value, and that value of course is something that traders will take quite a bit of a shine to. I have no interest in shorting because I do think that any negative day more likely than not, will invite more buying and of course, you have to keep in mind that you do get paid to hang on to this currency at the end of the day via swap. So in the end, it’s a longer term trend to the upside that I see here.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire



Related stories
2 weeks ago - Super Micro Computer (SMCI) may be a new name for you. It’s been a Big Money favorite since 2022, jumping 1172% since this one signal.
3 weeks ago - A very volatile week ended with a massive NFP beat sending the US dollar to a multi-week high. US indices continue to rally, while gold drifts lower.
3 weeks ago - The US dollar has bounced slightly against the Japanese yen to show signs of life, as we continue to see the interest rate differential make a huge difference between the 2 currencies.
3 weeks ago - The British pound has continued to go sideways overall during the course of the week, as we don’t have any momentum. However, this is a market that is coiling up like a spring in could see a fairly big move.
Other stories
9 minutes ago - Hedge funds piled into tech stocks in the weeks before Nvidia Corp. earnings. Now, they’re cashing out and selling at the fastest pace in seven months.
10 minutes ago - The following charts, updated after each Powerball lottery drawing, help you see which numbers have a better chance of rolling out because they haven't hit for weeks or haven't rolled out as frequently in the last 100 games. Powerball...
22 minutes ago - Hedge funds that piled into the tech trade leading up to Nvidia's earnings are cashing out at the fastest pace in more than seven months.
41 minutes ago - Charter Communications Inc. is exploring a takeover of smaller cable provider Altice USA Inc., according to people with knowledge of the matter.
42 minutes ago - Zoom's growth has moderated dramatically since the pandemic, and the company is projecting a revenue increase of less than 2% for the current fiscal year.
42 minutes ago - The aviation-industry and government experts also said safety training and procedures at Boeing are constantly changing, leading to confusion among employees.