USD/JPY Forecast – US Dollar Continues to Look For Bottom

US Dollar vs Japanese Yen Technical Analysis

The U.S. Dollar initially fell during the Thursday trading session to reach towards the 155 Yen level before turning around and showing strength. By doing so, the market looks as if it could recover from the massive selloffs that we have seen and quite frankly, I think it’s probably only a matter of time. For those who are a little bit more aggressive, they’re probably already in this pair again and I certainly think that the 155 yen level is an area that I think a lot of people will have to pay close attention to in the past and in the future.

So, with the market memory attached to this level, it’s not a huge surprise to see that we are trying to form some type of hammer. I think at this point, what’s important is how we behave on Friday. Do we have any follow through? Quite frankly, I would expect that, but to try to anticipate that is a little bit difficult. I suspect that during the Wednesday session, the Bank of Japan got involved as well, because they are notorious for waiting for a lot of negativity in the market and then jumping on in order to really push the issue.

Nonetheless, this is a market that pays you at the end of every day and I think traders will continue to pay close attention to that. Pay attention to the 10-year yield that will have a lot to do with where we go because if they start rising again, that will almost certainly put upward pressure on this market.

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