USD/JPY Forecast – US Dollar Bounces in The Early Thursday Hours

US Dollar vs Japanese Yen Technical Analysis

The U.S. Dollar has fallen pretty significantly during the overnight hours on Thursday to break down below the 150 yen level rather significantly. However, we have seen the market turn around quite aggressively and we are now back above the 150 yen level. So, I have to look at this through the prism of, did we just hit the bottom? It’s a little difficult to get aggressive at this point, mainly due to the fact that we have already sold off so drastically, but we also have the jobs number coming out on Friday.

The Friday of course is a big influence on the US dollar against the Japanese yen due to the interest rate differential. At this point in time, if we could break above the 152 yen level, we would also take out the 200 day EMA and that of course would be very bullish. In that environment, I think you start to see a deeper recovery.

However, if we were to break down below the lows of the session for Thursday, that would be extraordinarily negative. And at that point in time, we really have to question whether or not we are about to see something ugly happen. This has been a brutal sell-off, but it’s also been helped along by central bank intervention. So don’t forget that. I think at this point in time, value hunters are starting to look at this and think about getting paid at the end of every day.

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