The US dollar made a strong start against the Japanese yen on Friday, breaking through resistance near the 158 yen level. However, the gains were quickly retraced, leaving the future uncertain. It seems clear that the Japanese yen is struggling to maintain its value against the US dollar.
The US dollar continues to show strength against the yen, making it an appealing option for investors. Short-term dips in price are seen as buying opportunities, especially with strong support at the 155 yen level and the 50-day EMA. There is potential for an ascending triangle pattern to form, which could be a significant development.
If the US dollar manages to break above the 158 yen level and hold that position, it could open the door to a move towards the 160 yen level. This was the point where the Bank of Japan intervened earlier in the year to push the pair lower. Regardless, selling the yen at this point does not seem wise, as the trend favors owning the US dollar.
Overall, it is best to keep an eye on economic events and developments in the market to make informed decisions. This analysis was originally published on FX Empire.