The Various Levels to WatchThe 148 yen level underneath will continue to offer support, and I think that’s worth noting, especially as the 50-day EMA seems to be racing toward it. With all of that being said, I think we’ve got a situation where traders continue to look at the carry trade and the interest rate differential as something that’s just a little too good to ignore. The interest rate differential between the two economies remains fairly robust.And of course, the Bank of Japan has recently admitted that it cannot raise interest rates any further. So, there you go.If we break down below the 148 level, then I suspect that means that the US dollar is in serious trouble and perhaps the Japanese yen is gaining due to some type of major risk off event.(Click on image to enlarge)That being said though, I do think that there’s a major barrier, 150 yen, that once it breaks, it will bring in more of the FOMO traders. In that situation, you have a serious chance of a bigger move into the carry trade. This would simply be a continuation of the previous move that we had seen in the recent past.More By This Author:Gold Forecast: Continues To Look Very StrongUSD/JPY Forecast: Rallies Amid Interest Rate DivergenceGBP/USD Forex Signal: British Pound Finds Support On Friday
USD/JPY Forecast: Pullback After Hitting Resistance
