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US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar has gone back and forth during the course of the trading week, as we continue to see a lot of noisy behavior. That being said, the market looks as if we are going to try to break higher, considering that we have seen such a massive turnaround at the end of the week. This is especially true on Friday, when we plunged quite drastically, only to turn around and show signs of life. At this point though, we are getting a little extended so a slight correction could be expected given enough time. The ¥142.50 level underneath should continue to be massive support.
On the upside, if we break above the ¥147.50 level, then the market could go much higher, perhaps reaching toward the ¥150 level. The ¥150 level obviously has a lot of psychology attached to it, so it is worth paying attention to. Anything above there then opens up an even bigger move, but it’s worth noting that we initially fell enough to test the 50% Fibonacci were level, near the ¥127.50 level. We have been rallying quite significantly since then, so it’s worth noting that the market has been very bullish for some time.
All things being equal, this is a market that will continue to pay attention to interest-rate differential, therefore should continue to favor the US dollar, despite the fact that some are calling for interest rates to cool off. Ultimately, trends take a long time to turn around and the Forex world, and this pair won’t be any different anytime soon.
For a look at all of today’s economic events, check out our economic calendar.
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