Ella 
In the realm of technical analysis, the US dollar continued its upward momentum against the Japanese yen throughout the past week, edging closer to the critical ¥155 level. Despite considerable market volatility, notable instances of decline were met with robust buying interest, signaling underlying support for the greenback.
The ¥155 threshold represents a significant psychological barrier, yet long-term projections for this currency pair extend to around ¥170. Hence, there is a favorable outlook for capitalizing on short-term retracements to leverage the prevailing strength. Moreover, the positive swap associated with holding this pair adds to its attractiveness. Despite the Bank of Japan’s limited influence on market dynamics and interest rate differentials, any intervention attempts would likely reinforce buying sentiment, particularly following a breach of the ¥155 level. Looking ahead, the anticipated target lies at around ¥157.
Shorting this market is not a viable strategy at present. Even speculation of a shift in the Federal Reserve’s monetary policy would not suffice to warrant such a move. While future rate cuts by the Fed are expected, the timeline for such actions continues to be postponed, supporting the sustained strength of the US dollar. Conversely, the Japanese yen faces a bleak outlook, with no prospect of rate hikes on the horizon, signaling challenging times ahead for the currency.
In conclusion, the USD/JPY pair is poised to maintain its resilience, driven by prevailing market dynamics and interest rate differentials, while the Japanese yen grapples with a lackluster outlook amidst a backdrop of subdued monetary policy prospects.
