USD/JPY Forecast: Continues To See Noise
(MENAFN- Daily Forex) The usd/jpy displayed a back-and-forth movement during Thursday's trading session, reflecting the ongoing noisy behavior in the market. Despite this volatility, market participants are eyeing the ¥140 level as a potential target. This level holds psychological significance and has previously witnessed selling pressure. However, it is likely only a matter of time before the market breaks out above ¥140, given the wide interest rate differential between the United States and Japan.
Advertisement take advantage of today's market opportunities start trading now Beneath the current levels, the ¥138 level forms the top of an ascending triangle pattern that has garnered significant attention. Traders are closely monitoring this pattern, and its presence suggests that buyers will emerge. The market's memory and the tendency of technical traders to chase such moves further support the expectation of increased buying activity. If the market successfully breaks above ¥140, it could open the door for a move towards the ¥148 level, fulfilling the measured move of the pattern.There is no reason to Buy the YenThe 50-Day Exponential Moving Average (ema ), which currently sits around the ¥136 level, is rising sharply. It is likely to serve as a level of support if the market experiences a drop to that level. Overall, the market is characterized by noisy volatility, but there is significant upward pressure on the US dollar. Additionally, it is important to consider that the Federal Reserve is expected to maintain a tight monetary policy in the foreseeable future, while the Bank of Japan continues to pursue a loose monetary policy, making the Japanese yen less appealing. Until they stop their yield curve control, there is no reason to buy the yen, barring jolt to the system, perhaps the Federal Reserve becoming aggressively dovish as an example. At the end of the day, the US dollar exhibited back-and-forth movement during Thursday's trading session amid market noise. Traders are targeting the ¥140 level as a significant threshold, anticipating a potential breakout. The ¥138 level, forming part of an ascending triangle pattern, attracts attention and is likely to draw buyers. The presence of the 50-Day EMA of around ¥136 suggests potential support. The market is expected to remain volatile but with upward pressure on the US dollar. Factors such as the interest rate differential and contrasting monetary policies between the US and Japan contribute to the dollar's strength against the yen.Ready to trade our forex daily forecast ? We've shortlisted the best currency trading platforms in the industry for you.
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