USD/JPY Forecast – US Dollar Tests Trendline Against Yen
USD/JPY Forecast Video for 25.11.22
US Dollar vs Japanese Yen Technical Analysis
The US dollar has fallen during the trading session on Thursday to test a major trendline against the Japanese yen, which goes back to the beginning of the year. At this point, the US dollar continues to take a little bit of a beating as the FOMC Meeting Minutes revealed a bit of indecision on the part of some Federal Reserve governors. Traders have taken this information and ran with it, suggesting that the Federal Reserve was going to slow down the rate of interest rate hikes, but perhaps may have gotten a bit ahead of themselves.
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Regardless, this has had the market repricing some risk in this pair, and therefore we have crashed into this up trendline. The ¥137.50 level was an area of support previously, and an area that will certainly attract a certain amount of attention. If we break down below there, then the next area is more likely than not going to be the ¥135 level, where the 200-Day EMA currently sits. Anything below there could kick off a massive turnaround.
At this point, it looks like the trendline is at least trying to offer some support, so it’ll be interesting to see how this plays out once we get more liquidity, which although Friday does have some US traders working, the reality is that it’s not really going to be until Monday that we see how the “full market” behaves. With this, it could be a nice buying opportunity, but I would let the market tell me if it is going to rally first before putting money to work at this juncture. With that being said, the next 24 hours might be more a lesson observation period for you.
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