(MENAFN- Daily Forex)

• The US dollar has fallen a bit against the Japanese yen and now it looks like we are starting to see buyers jump back into the market.
• This is a pair that I remain bullish about, and I think we're starting to show signs of maybe being able to get involved in this market.
• After all, traders will try to find some excuse to take advantage of that positive swap.

That being said, the 150 yen level is where the 50 % Fibonacci retracement level is on the move that we have seen recently. Or you could even look at the gap and see that we tested the 50 % Fibonacci retracement level from the actual gap itself. It does make sense that people will be willing to get involved and try to reach the 153 yen level. This is a market that often sees these little pullbacks in short order, but the interest rate differential continues to favor the US dollar.

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All things being equal, this is a market that I think given enough time, this is a pair that goes much higher. And with that being the case, I have to look at potential targets, and I will base it on and granted this is a huge look here at technical analysis, but we did break out of an ascending triangle, which basically measures for a move to about 162 or so, which is where we broke down from in July of 2024. I think that might be where we're going.

EURUSD Chart by TradingView

The interest rate differential and of course the soft Japanese central bank will continue to push this thing higher, and unless we get some type of major risk-off event, which is always entirely impossible, I think the Japanese Yen remains on its back foot for quite some time.

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