USD/JPY Forecast – US Dollar Plunges Amidst Major Uptrend

US Dollar vs Japanese Yen Technical Analysis

The U.S. dollar has fallen pretty significantly to the Japanese yen in the early hours of Wednesday. But at this point in time, it’s interesting to see whether or not the market will find buyers on a dip. I think that is probably the case. And I think that 155 is going to continue to be very important. All things being equal, this is a market that given enough time, I think people will focus on that interest rate differential. Although people I think have overreacted to Trump suggesting that there shouldn’t be any interest rate cuts between now and the election, as well as a handful of other nonsensical reasons.

There’s also the possibility that maybe the Japanese have intervened again. I’m still looking for signs of that. I don’t know if that’s the case, but what I do know is that this pair has been in a massive uptrend for quite some time. And I think ultimately this is a market that will attract value hunters. Even if we were to break down below the 155 yen level, the 152 yen level also features the 200 day EMA and I think a lot of people will look at that as the trend, like what defines the overall uptrend or downtrend.

So, despite the fact that it’s pretty ugly, you know, we have seen this before in this pair. So, what I’m waiting for is a little bit of a bounce and some momentum to the upside to simply join. This has been the way forward for some time now, and I think will continue to be. Those who are more long-term focused are certainly interested at this point in time.

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