USD/JPY Forecast: Continuing Upward Momentum – 08 March 2023
The US dollar is expected to continue its upward momentum against the Japanese yen in the near term, according to recent market analysis. Despite a slight pullback in trading on Tuesday, the dollar has consistently found buyers every time it has retreated, indicating strong interest in the market.
The key resistance level of ?137.50 is expected to play an important role in the market’s future movements. If the dollar is able to break through this level, it could continue to climb higher, potentially reaching ?140 and ?142.50 levels. However, the market is likely to find support at the ?135 level, creating a short-term floor for the market.
Furthermore, the 50-Day EMA is about to cross above the 200-Day EMA, which is considered a bullish sign in technical analysis. This could potentially signal a longer-term “buy-and-hold” opportunity for investors who are looking to profit from the market’s upward momentum. This doesn’t necessarily mean that we are going to shoot straight up in the air like we did last year, but the trajectory is still there. Because of this, selling is very difficult at this point in time.
A factor that is expected to influence the market’s future movements is the monetary policies of the central banks.The Bank of Japan is expected to continue flooding the market with yen in order to keep interest rates low, which is likely to limit the yen’s strength against the US dollar.Additionally, the Federal Reserve has suggested a “tighter for longer” monetary policy, which is expected to further boost the dollar’s momentum.
Given these factors, many analysts believe that the US dollar is likely to continue its upward trend against the Japanese yen in the near term. This has led some investors to adopt a “buy-and-hold” strategy for this currency pair, in order to capitalize on the potential for future gains.
While the US dollar may face some resistance at key levels, such as ?137.50, the overall trend is expected to be bullish in the near term. This is due to both technical analysis and central bank policies that are likely to support the dollar’s momentum. As a result, investors may want to consider taking a long-term position in the US dollar against the Japanese yen, in order to potentially benefit from this market’s upward trend.
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