USD/JPY Forecast – US Dollar Continues to Build a Potential Base Against The Yen

US Dollar vs Japanese Yen Technical Analysis

The U.S. dollar has bounced a bit during the early hours on Friday against the Japanese yen as it looks like the market is ready to go back and forth. So, I think at this point in time, we have to recognize that the 145 yen level is an area of support. And if we can break higher from here, we could go as high as 148.50 yen. After that, we have the 150 yen level, which of course is a large round psychologically significant figure. It’s probably worth noting that we are bouncing right along a trend line. And that of course is something that’s very important as well.

So, with all of that being said, I do think you’ve got a situation where we are trying to find the bottom, but whether or not we have found it remains to be seen. Remember, trend changes tend to be very noisy, and I think that’s part of what we are seeing here. If the Federal Reserve isn’t nearly as aggressive as people think, that could send this market straight back up in the air. Keep in mind that the Bank of Japan can only cut so far due to the massive amount of debt that the Japanese economy is in.

With this being said, this is a market that I think continues to see choppy, volatility, volatility, and, uh, noisy behavior. All things being equal though, if we were to break down below the 142 yen level, then we could drop to the 140 yen level. But right now, uh, it looks like the buyers are willing to at least defend. Before we start trying to break down though, we would need some type of fundamental affirmation of all of the risk that it would take to make that happen.

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