USD/JPY Forecast Today - 22/10: USD Soars Vs JPY (Chart)

(MENAFN- Daily Forex)

• In my daily analysis of the USD/JPY pair, the pair has exploded to the upside during the Monday session, as we have broken above the ¥150 level, an area that of course is very important.
• Now that we are above that area, it looks as if short-term pullbacks will continue to get bought into, especially as the 200 Day EMA has offered significant support.
• In general, this is an exhaustively bullish mood, and now that we have broken above the crucial ¥150 level, we could start to see momentum pick up.

Interest Rate Differential Continues

The interest rate differential continues in this pair, as the market has broken to the upside, and I think we will continue to see traders hold onto this pair in order to collect swaps at the end of every day.

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After all, the Bank of Japan has recently admitted that he cannot tighten monetary policy any further, so therefore think you get a situation where we will see the upward trajectory continue.

After all, I like the idea of buying short-term pullbacks that we can take advantage of, as the market has shown itself to be important.

EURUSD Chart by TradingView

Even if we see a breakdown from this area, the 200 Day EMA is likely to provide strong support. Should the price fall below that level, additional support can be found around the ¥148 level, with the 50 Day EMA just beneath it. This creates a scenario where traders may view any dips as opportunities to buy "cheap US dollars".
Keep an eye on the USD/JPY live chart for real-time movements and potential trade setups.

=On the upside, I think we've got a situation where the pair could very easily go to the ¥153.50 level, which is an area that has been noisy in the past.

All things being equal, I do think that the carry trade is back, and therefore we will continue to see this move to the upside. All things being equal, I have no interest in selling this pair.

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