US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar recently saw a slight pullback against the Japanese yen before breaking above the 160 yen level. This level is significant and could attract attention from traders. Market memory may come into play, leading to potential buyers at this level. Even if there is a pullback, there is strong support near the 158 yen level, possibly even the 155 yen level.
Overall, the market is likely to continue moving higher, although it may be a bit overextended. Any pullback should be viewed as a buying opportunity, as the interest rate differential between the two central banks remains wide. Japan is limited in its monetary policy options, while the Federal Reserve is expected to maintain its current stance.
In conclusion, the US dollar is expected to strengthen against the Japanese yen in the coming weeks, with potential buying opportunities on any pullbacks.