USD/JPY Forecast – US Dollar Continues to See Support Underneath

Reported about 1 year ago

Technical analysis shows the U.S. Dollar slightly pulling back against the Japanese Yen, with Non-farm Payroll on Friday expected to impact currency markets. A potential pullback to the 160 yen level, previously supported by the Bank of Japan, is anticipated due to overextension. The interest rate differential favors buying dips rather than shorting the pair, as the Federal Reserve's expected rate cuts still maintain a significant interest rate advantage over the Bank of Japan's limitations in adjusting rates due to high country debt. Overall, the forecast suggests a continued bullish trend for the US Dollar against the Japanese Yen.

Source: YAHOO

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