US Dollar vs Japanese Yen Technical Analysis
The US dollar saw a slight pullback against the Japanese yen on Wednesday, with the Bank of Japan defending the area where the pullback occurred. Short-term pullbacks are expected to attract buying pressure due to the significant interest rate differential between the two currencies. The market was affected by Juneteenth in the United States, with New York not actively participating.
If the US dollar drops further, there is strong support near the 50-day EMA and the 155 yen level. Conversely, if the currency pair breaks above recent highs, it could move towards the 160 yen level. The 160 yen level is where the Bank of Japan intervened previously to push the yen down temporarily.