USD/JPY Forecast – US Dollar Attempts to Form a Bottom Against the Yen
Technical analysis of the US dollar against the Japanese yen
The US dollar has been fluctuating against the Japanese yen recently, trying to figure out where to go next. The 145 yen level has been important several times, and if we break through this level, the market could likely rise to the 149 yen level.
All other factors remaining equal, I think this market is going to be very noisy, especially as traders try to figure out what the Federal Reserve will do next. And if things do indeed move up from here, we’ll likely continue to see a lot of indecision. But one thing would become abundantly clear: the Japanese yen would gain drastic strength if it were to fall below the 142 yen mark.
However, if we turn around and break the 150 yen level, it becomes more or less buy and hold. Still, I think we’ll just be hovering around that 145 yen level in the meantime, especially when the PCE index numbers come out. And that will give traders a lot to think about. The US dollar is oversold but also doesn’t seem to have any momentum. So we may be stuck in that area for a while. Keep in mind that volume is usually a little light this time of year, so that could be part of what’s going on as well.
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This article was originally published on FX Empire.
