USD/JPY Forecast – US Dollar Continues to See Pressures

US Dollar vs Japanese Yen Technical Analysis

The US dollar fell a bit during the early hours on Friday and then turned around to attack the 143 yen level. If we can turn around and continue to go higher, the 145 yen level could be a target. Anything above there then starts to bring more FOMO into the market. Regardless, this is a situation where I think we are looking at a major trend line that also should be paid close attention to.

The uptrend line, of course, has a history of causing a major bounce, going back all the way to the beginning of the year. So that’s essentially where we’re at. We’re testing the trend for the year. And the 50 day EMA has broken down below the 200 day EMA. And it suggests that perhaps we are going to continue to see a lot of negative pressure, but whether or not we can continue to break down from here remains to be seen.

We are hanging on by a little bit of a thread here. And if we can turn things around, then it’s a good sign. But if we cannot, and let’s say that the US dollar drops below 142 yen, that could open up a move down to the 137.50 yen level rather quickly, and then possibly as low as 127 yen over the longer term. This of course would accompany a major risk off move. So, keep that in mind as well, as you watch the global markets, they do tend to move in a one-to-one correlation.

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