USD/JPY Forecast – US Dollar Continues to Find Same Support Level
In This Article:
US Dollar vs Japanese Yen Technical Analysis
The US dollar has bounced a bit in the early hours against the Japanese yen against the backdrop of the 142 yen level offering massive support. This is an area where I think a lot of traders will be looking to find buyers. And therefore, the little bit of a bounce does make a certain amount of sense as the 142 yen level has been crucial multiple times. When you zoom out, it doesn’t take a whole lot of imagination to see that the market is most certainly testing an area of pretty significant support, not only based on the 142 yen level, but a massive trend line that goes back to the beginning of 2022.
So, it’s somewhat now or never for the dollar. Keep in mind that on the 18th, we have the next Federal Reserve meeting. And while it is expected to be a cut, it’s the language that people will be paying the most attention to. Furthermore, two days later on the 20th, we have the next interest rate decision from the Bank of Japan.
So, the next week or two might be somewhat choppy as we hang around this general vicinity, but this is an area that if we are going to see a turnaround, this would be a prime candidate. If we break down below the 140 yen level, this whole thing probably falls apart, and we could find ourselves down at 125 yen rather quickly.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire