Affiliate Disclosure
Affiliate Disclosure adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/JPY Forecast: US Dollar Continues to Look Strong Against Japanese Yen

  • It’s easy to see that the US dollar continues to rally quite significantly against the Japanese yen at the drop of a hat, and therefore I think we got a situation where traders will continue to look at this through the prism of being a “carry trade.”
  • After all, you get paid at the end of every day to hang on to this pair, and I think that is something that you need to be very cognizant of, and how much that can mean for institutions.

USD/JPY Forecast Today - 11/07: USD Strong vs JPY (Chart)

Furthermore, we have a lot of noise out there when it comes to economic announcements, as the CPI and PPI numbers come out over the next couple of days. That obviously will have a major influence on what people think will happen in the United States, perhaps more importantly what’s going to come out of the Federal Reserve, which at the end of the day is the only thing that most traders seem to care about. With that being the case, I think you’ve got a scenario where the carry trade will continue to be a major issue.

Top Forex Brokers

    Technical Analysis

    The technical analysis on this pair is obviously very strong and it looks like the ¥160 level underneath is going to be a short-term floor in the market. We also have the 50-Day EMA near the ¥158 level, an area that previously has been important. However, the ¥160 level is an area where the Bank of Japan had recently intervened, so there is a lot of “market memory” there, so I think it would be difficult to break down through that level unless of course the inflation numbers in the United States are that horrific.

    Even if the Federal Reserve were to cut rates wants between now and the end of the year, the interest rate differential is still a huge factor on what happens next, and therefore I think you need to realize that even in a situation where there is a 25 basis point interest rate cut in the United States, something that’s definitely not a 100% possibility, you still get paid to hang on to this pair and at the end of the day that continues to be the main factor.

    Ready to trade our USD/JPY daily analysis? Here are the best forex brokers in Japan to choose from. 

    Christopher Lewis
    About Christopher Lewis

    Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.


    Most Visited Forex Broker Reviews