Yahoo Finance USD/JPY Forecast – US Dollar Pulls Back a Bit
US Dollar vs Japanese Yen Technical Analysis
The U.S. Dollar initially did rally a bit against the Japanese yen on Friday but has since pulled back. The PCE core index numbers came out as expected, so that boost did not happen. But at this point in time, we aren’t just starting to hang around the 160.50 yen level. A pullback to the 160 yen level is an area where we had previously seen a lot of resistance. And therefore, I think there is a lot of market memory there that you could be paying attention to.
I would be a buyer of dips in this pair and due to the fact that you get paid to hang on to this pair at the end of every day. The Bank of Japan cannot do anything about monetary policy, at least as far as tightening is concerned. So, I do think that the Japanese yen continues to lose. However, we don’t go straight up in the air forever. And as you can see, we have been rather aggressive to the upside. So, I’m waiting to see how we behave near 160 yen if we do get that pullback.
On the other hand, if we turn around and take out the top of the candlestick, then it just shows more impulsivity jumping into the market. Either way, this is a market that I will not sell, and I’m just looking for an opportunity on short-term charts to get involved and start buying again, perhaps even on something like the one-hour chart, or even the fifteen minute chart.
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This article was originally posted on FX Empire
