The US Dollar vs Japanese Yen saw significant movement during the trading week, initially dropping to 155 yen before bouncing back. This was influenced by a stronger than expected jobs number on Friday, leading to speculation about interest rate differentials and the Federal Reserve’s monetary policy. Any short-term pullbacks are seen as buying opportunities.
If the market breaks below the candlestick bottom, the 152 yen level may act as support due to past resistance. Overall, the market is viewed as a value-buying opportunity with the interest rate differential playing a key role for traders.
Shorting this pair is not advised unless it drops below 150 yen. Even then, caution is advised due to swap payments. The outlook remains bullish, with expectations of breaking above 158 yen and heading towards the 160 yen level.
For more economic events, refer to the economic calendar.