(MENAFN- Daily Forex)

• The US dollar advanced against the yen amid continued volatility, with strong interest rate differentials supporting buyers.
• Multiple support zones down to 153 yen highlight persistent dip-buying potential, while a breakout above 158 yen could open the path toward 160.

The US dollar rallied against the Japanese yen during the trading session on Monday as the market continues to see a lot of significant volatility. But that being said, the market is likely to continue to see a lot of choppy behavior. But I think even if we do fall from here, it's likely that we continue to see a lot of buying opportunities all the way down to at least the 153 yen level.

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That being said, the market is likely to continue to see plenty of buyers willing to get involved due to the interest rate differential favoring the United States dollar, as the Bank of Japan simply cannot do anything whatsoever to tighten monetary policy in any significant manner.

If the market does fall from here, I think the 155 yen level is an area that you have to look for some type of bounce, followed by 154.50. And then the 153 yen level, which for me is the absolute floor, the 50-day EMA sits right around there as well. And I think you have a scenario where plenty of people are willing to sit on this trade and simply collect profit at the end of every day via swap. And then, of course, eventually the nominal gains.

EURUSD Chart by TradingView

If we can break above the 158 yen level, then it's likely that the market will go to the 159 yen level, which is an area that's been important. And then naturally we'll be watching the 160 yen level after that. I have no interest in shorting this pair. And even if we did break down below the 153 yen level, then at that point in time, I'm probably going to check out the fundamental situation before I put any real money into this market.

Want to trade our USD/JPY forex analysis and predictions? Here's a list of forex brokers in Japan to check out.

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