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

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gone back and forth against the Japanese yen during the trading session on Tuesday, as we are trying to sort out what direction we are heading. That being said, I think this is a market that will continue to be very noisy, but I also recognize that we are in the midst of trying to determine whether or not the carry trade can come back or if it’s dead and gone. Ultimately, I do think the next few days will probably be more of the sideways chop that we have seen, so I’m not looking for much, but there are a couple of levels that I am paying close attention to.

If we can break above the 150 yen level, then I think you have the possibility of seeing this pair go much higher, perhaps reaching the 152 yen level followed by the 155 yen level. If we break down from here, then the 144 yen level will be support. Anything below there, then it starts to get somewhat dicey for the greenback. It’s worth noting that the US dollar is selling off against almost everything at the moment.

So, the fact that we can even hold our ground here is probably a good sign, but it’s still a bit early to make any major distinctions on that. I think we have sideways action ahead of us, but once we break out of this area and pass one of those levels, we should see this market really start to pick up momentum.

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