USD/JPY Forecast – US Dollar Continues to Look Soft Against The Yen

US Dollar vs Japanese Yen Technical Analysis

The U.S. dollar initially did try to rally a bit against the Japanese yen during the trading session on Friday, as it looks like we are going to continue to see a lot of back and forth behavior. Ultimately, I think this is a scenario where you look at this through the prism of trying to see whether or not we can break above the 148.50 yen level, which could kick off a deeper move to the upside. That being said, we are currently struggling with the overall a longer term uptrend. And if we can’t get above there, that shows a massive risk of this type of situation.

With that being said, the market is likely to remain somewhat range bound in this area. But if we were to break down below the swing low on Monday, that would be horrific sign for the dollar. And it would show that the Japanese yen should continue to strengthen. A lot of this comes down to deleveraging and the risk of trading. And at this point, we have seen a little bit of a bounce, but really not a lot to get excited about. So, I’m definitely watching this pair, as it can gives us a sign of where risk appetite is going. Ultimately, this is a market that I think will continue to be closely watched by traders in all markets, not just this one.

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