The US dollar has recently shown strength against the Japanese yen, breaking above the key level of 160 yen. This level is significant psychologically and many traders are paying attention to it. While there may be some pullback, there is strong support around the 158 yen level and possibly even the 155 yen level.
The market is expected to continue to rise, although it may be a bit overextended. Any pullbacks should be seen as buying opportunities due to the wide interest rate differential between the US Federal Reserve and the Bank of Japan. Japan’s monetary policy is currently limited, while the Federal Reserve is likely to maintain its current stance.
Overall, it is advised to buy on dips as the Japanese yen is expected to weaken against other currencies, especially with high interest rates in the United States. This trend is likely to continue in the near future.