Yahoo Finance USD/JPY Weekly Price Forecast – Greenback Continues to Terrorize The Yen
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar has had a strong week against the Japanese yen yet again, despite the fact that we had that scary week, the previous one. After all, the Bank of Japan got involved and slammed this pair to the downside, but it’s worth noting that we touched the 152 yen level and then turned around completely.
The 152 yen level is an area that previously had been resistant, so we just simply retested that after a breakout of the ascending triangle. The market breaking out to the upside and now threatening the 156 yen level makes sense, and I think in the meantime we may get a lot of choppy volatility, but we are still very much in an uptrend, and quite frankly should be. The Bank of Japan is in a situation where it can’t raise rates for very long due to the fact that the Japanese are neck deep in debt. The interest rate differential between the two currencies continues to push this market higher, and of course you get paid to hang on to it.
So I’ve been very long in this market for quite some time. In general, this is a market that I think will retest the 160 yen level, but it may not be the smoothest ride to that barrier. If we can break above there, then it’s likely that the market will just continue the next leg higher. Based on the measured move of the ascending triangle that we broke out of; you could be talking about a move that has 25 handles attached to it. So that would put you near 177 yen, while it does sound very drastic. The reality is decades ago, that’s where we traded. So, it certainly is a very real possibility.
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This article was originally posted on FX Empire
