- On Tuesday, the US dollar initially rose against the Japanese yen, touching the 149 yen mark, but then slipped below the 200-day EMA during some trading sessions. Support is still evident at the 50-day level. The current market conditions suggest a bit more resilience, but with the upcoming non-farm payrolls report on Friday, traders seem to be cautiously participating.
- Despite this, there’s still a case for benefiting from swap differentials, as interest rates continue to favor the US dollar. If it breaks the 149 yen threshold, reaching 150 or even 151 yen seems plausible. I’ve been picking up some dips over the last few months.
- That seems to be my strategy going forward—accumulate swaps, stay in the trade, and cash out when the opportunity arises.
It’s lowered with a break
https://www.youtube.com/watch?v=x6wza0xq2ic
If we dip below the 146 yen mark, things could really deteriorate, potentially reaching 143.50. The market chatter is significant, but somehow, it isn’t a huge shock. Given the current situation, it’s tough for traders to take strong positions, especially concerning the dollar-yen pairing. However, overall, I lean towards the US dollar until it falls under 146 yen.
I’m interested in trading the USD/JPY. Here’s a list of Japanese Forex Brokers that I’m considering.
Christopher Lewis, with over 20 years in financial markets, specializes in foreign exchange trading. He contributes regularly to various publications, including his personal website and others like FX Empire and Investing.com. Chris leans towards technical analysis for his trade decisions and enjoys a long-term trading approach, often holding positions for days or even weeks.
