USD/JPY Price Forecast: US Dollar Finds Buyers

from Daily Forex. This is Christopher Lewis. Take a look at the US dollar against the Japanese yen. The US dollar has initially fallen against the Japanese yen during the trading session here on Thursday to test the 200 day EMA. That being said, we have turned around to show signs of life. And now it looks like we are just kind of hanging around these moving averages. the 200day EMA and the 50-day EMA both end up being a bit of a support level. It is flat. It does suggest that perhaps we are is stuck in a range. That being said, when you look a little further out, you can see that the 156.50 50 yen level and the 159 yen level offers a significant amount of support and resistance. If we can break out of this area, then we could really start to move. Keep in mind, one of the things that is moving the dollar at the moment is the fact that the uh Federal Reserve may have to continue hiking based on inflation via energy, etc. rising rates in the United States continues to put that upward pressure on the dollar. While at the same time, the other major factor is that the Japanese have intervened a couple of times recently and it does provide a little bit of padding for the yen. Nonetheless, the carry trade is strong here. The interest rate differential is still wide enough to drive a truck through and I still prefer to buy short-term pullbacks as long as we can stay above the 156.50. 50 yen level. A break above 159 yen immediately puts the 160 yen level in focus. Anything above there, then we really start to fly.