USD/JPY Forecast – US Dollar Bounces From Trendline
USD/JPY Forecast Video for 29.11.22
US Dollar vs Japanese Yen Technical Analysis
The US dollar has bounced a bit from the uptrend line that we have been following for some time on Monday. Furthermore, we have tested the ¥137.50 level, which is an area that of course has been important once before. Looking at this chart, the question now will become whether or not this is a double bottom, or if it is a situation where we are trying to break down through the trendline.
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We have seen some weakness in the US dollar as of late, but this week could change things completely. We have the core PCE figures coming out this week, which is the favored inflation measure of the Federal Reserve. This could obviously have a major influence on perception as to what the Fed may do going forward, so therefore you will need to be somewhat cautious. Beyond that, we also have the jobs number which obviously will have a major influence on the currency markets and the relationship of these 2 currencies as they are heavily influenced by interest rate differentials.
If we turn around and rally from here, the ¥140 level will be an area that a lot of people pay close attention to, as it is a large, round, psychologically significant figure. It also is an area where we have seen some action in the past so of course it’ll be interesting to see how this plays out. If we break down below the trendline, then the next area of major support will be at the 200-Day EMA which coincides quite nicely with the ¥135 level. Either way, we are on the precipice of making significant decisions in the future direction.
For a look at all of today’s economic events, check out our economic calendar.