USD/JPY Forecast – US Dollar Continues to Solidify Against The Yen
US Dollar vs Japanese Yen Technical Analysis
The US dollar has been very noisy during the early hours on Tuesday against the Japanese yen. As we continue to see the market test this uptrend line, all things being equal, the market is likely to continue to question where we’re going next. All things being equal, if we could break to the upside, then the market could go looking to the 148.50 yen level. This is an area that has been important previously and should continue to attract attention if we revisit it again.
It is that in that area, we would be the top of the consolidation area. And then if we can break above there, we would challenge the 150 yen level. On the other hand, if we were to break down below the 143 yen level, then underneath there could be a bit of a trap door, and we could see a bigger move lower. In general, I think this is a situation where you have a market that is trying to decide whether or not the carry trade can return.
I think there are a lot of questions out there, but it is worth noting that the so-called death cross is going on as the 50-day EMA just crossed below the 200-day EMA, but that’s generally a very late indicator anyway. So, I think you’re going to see more sideways and choppiness at least until the Friday session where we get the core PCE Index figures, as it gives the Fed a solid look at the overall inflation situation.
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This article was originally posted on FX Empire