Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/JPY Forecast: Dollar Continues to Build Inertia Against the Yen

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Dollar steady against Yen near 150 level. Key support at 148.50, potential for uptick amidst FOMC minutes release. BoJ's policy keeps buying interest high.

  • Early in Wednesday's trading session, the US dollar has been rather quiet compared to the Japanese Yen; it appears that we are just circling around in an attempt to work off some surplus froth.
  • We are hovering around the 150 level, which indicates that the dollar/yen has not moved much throughout the Wednesday morning trading session.
  • We do have a lot of support here, and I believe there are many places you may look for something worthwhile.

The first one is the level at 148.50 yen, which has historically shown resistance. The 50-day EMA is shown, and the level of 147.33 is located beneath it. With the majority of brokers, at least, this market continues to see favorable swap activity overall.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

As a result, a lot of people are just holding onto it and waiting to be paid. It's also probably important to remember that Wednesday is a double swap day for the majority of brokerages, making it very profitable to hold onto it for larger positions – assuming you are longer-term inclined overall.

USD/JPY Forecast Today - 22/02: Dollar Gains on Yen Persist (Graph)

Increase in Price of USD? Possible.

Thus, I do believe that there is a chance for a slight increase in price during the day, but there is also the risk of some commotion due to the release of the FOMC meeting minutes later in the day. However, I doubt there will be much of a surprise there, unless there was a really heated discussion about whether or not rates in America should begin to decline immediately. I'm not sure if that makes a big difference. The level of 152 yen is seen above. We've reached a noteworthy swing high there, and if we break through, I do believe that FOMO trading might become involved. In that situation, we could really see this pair fly, as it is known to do at times.

In any case, I believe that short-term pull banks will continue to draw a lot of interest in this market. Furthermore, you are not at all interested in purchasing Japanese yen given the Bank of Japan is nowhere near tightening its monetary policies. All in all, I believe that it's steady as she goes and that any downturn presents a possible opportunity to buy.

Ready to trade our Forex daily analysis and predictions? Here are the best regulated trading brokers to choose from. 

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews