USD/JPY Forecast – US Dollar Attempts to Form a Floor Against The Yen

US Dollar vs Japanese Yen Technical Analysis

The U.S. dollar has been bouncing around recently against the Japanese yen, trying to sort out where we are going next. The 145 yen level is an area that has been important multiple times. And if we were to break above there, then it’s likely that the market could go to the 149 yen level.

All things being equal, this is a market that I think is going to be very noisy, especially as traders are trying to sort out what the Federal Reserve is going to do next. And if we do bounce from here, then it’s likely that we continue to see a lot of indecision. But the one thing that would become abundantly clear is that the Japanese yen would be strengthening drastically if we were to break down below the 142 yen level.

That being said, if we turn around and break above the 150 yen level, then it becomes more or less buy and hold. But that being said, I think in the meantime, we’re just going to bounce around this 145 yen level, especially as the PCE index numbers are going to come out. And that will give traders a lot of things to think about. The US dollar is oversold, but it doesn’t seem to have any momentum either. So, we may just hang around in this area for a while. Keep in mind this time of year is typically somewhat thin with volume, so that might be part of what’s going on as well.

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