USD/JPY, AUD/USD and USD/CHF Forecast – Currencies Looking to Bounce Back Against the USD

USD/JPY Technical Analysis

The US dollar initially rallied against the Japanese yen during trading on Thursday, but has given back some of the gains. I think ultimately, if we do pull back from here, and I think that makes a lot of sense, we will probably go looking towards the 155-yen level for potential support.

If we break down below there, the 200-day EMA would be targeted as well. The 158 yen level above was an area that was a bit of a magnet for price, and I do think we try to get back there based on interest rate differential. This is a simple overbought condition.

You are seeing the yen turn things around during the day against other currencies as well. So, I don’t read too much into this other than it might end up being a buying opportunity.

AUD/USD Technical Analysis

The Australian dollar has slipped a bit during early hours here on Thursday. At this point, I think we have a situation where we continue to bounce around between 0.69 and 0.71. Buying a bit of a drop and a bounce is my play here. The RBA is likely to raise rates again and Chinese manufacturing is doing fairly well.

USD/CHF Technical Analysis

The Swiss franc has strengthened just a bit against the US dollar during trading on Thursday as the downtrend looks like it is trying to continue. We will just have to wait and see. For me, if we can break above the 0.78 level, that would be a very strong sign for the US dollar.

As things stand right now, I still think that a bounce is probably more likely than not. The problem is that the bottoming process is so noisy. Keep in mind that the Swiss National Bank is willing to intervene if things get out of control. They have said that multiple times, but you have to really watch how the euro trades against the franc to get a read on when that might happen.

A break above 0.78 I think opens up the move to 0.79 but again, this is about collecting swap and maybe somewhat of a nominal gain. If we break down from here, look for 0.76 as a potential support level.

If you’d like to know more about how to trade forex, please visit our educational area.