The 50-day exponential moving average is expected to provide some support and will be located near the upper boundary of the bull flag marked on the chart.

  • During Friday’s trading session, the US dollar saw a significant recovery, while the Japanese yen experienced continued weakness.
  • This scenario points to a potential move towards the ¥142.50 level, which is a key area of ​​importance on many occasions.
  • While the US dollar may be slightly overbought in the short term, the overall trend suggests a continued upward trajectory. Holding this currency pair offers a positive swap, making it a sensible choice for profit-seeking investors.

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Considering the possibility of a slight downside, there may be opportunities for appreciation, especially if the market manages to break above the ¥142.50 level. A successful breakout could pave the way for the US dollar to reach the ¥145 level, a significant resistance barrier. If this resistance is broken, the market is likely to continue its upward momentum and potentially target even higher levels.

The 50-day exponential moving average is expected to provide some support and will be located near the upper boundary of the bull flag marked on the chart. The market’s explosive performance on Friday further bolsters the likelihood of further gains. Notably, the recent pullback to test the top of the previous ascending triangle resulted in a strong bounce, suggesting a bullish continuation pattern.

Based on the so-called “measured movement” since the breakout of the triangle, a move towards the ¥148 level is within the realm of possibility. With this projection in mind, investors are encouraged to take advantage of buying opportunities during market dips. A positive swap and the Bank of Japan’s continued commitment to monetary easing add to the appeal of holding the US dollar against the Japanese yen. Despite attempts to influence the market with verbal interventions, the Bank of Japan’s position remains unchanged.

In conclusion, the US Dollar saw a significant rally against the Japanese Yen during Friday’s trading session. Continued yen weakness positions the currency pair for potential gains towards the critical ¥142.50 level and beyond. Appreciation opportunities can arise in the event of a pullback, making strategic buying decisions key for investors looking to take advantage of positive swaps and bullish trend. As Japan maintains its loose monetary policy, the strength of the US dollar is expected to persist, supporting a favorable trading environment for holders of the currency pair.

USD/JPY

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