USD/JPY Forecast – US Dollar Choppy on Thursday Against Yen

USD/JPY Forecast Video for 12.05.23

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gone back and forth during the trading session on Thursday, as we continue to look for some type of footing. The 50 and the 200-Day EMA indicators are sitting just below current price, and therefore it does offer a bit of technical support. Ultimately, the market looks as if it is trying to chip away at the ¥135 level, an area that of course is a large, round, psychologically significant figure and an area that also will have had recent action at that causes the market to pay close attention to it. If we can get above there, then it opens up the possibility of the US dollar moving toward the ¥138 level, which is the top of the ascending triangle.

Underneath, if we were to break below those moving averages, there is still the uptrend line from the ascending triangle, so I do think that there is support in that general vicinity. At this point, it looks like we will continue to trade in this pattern, but the short term movement may be a bit choppy and indecisive. This does make a certain amount of sense, because quite frankly nobody really knows what’s going on with the economy, and therefore they will be paying close attention to the latest announcements.

I suspect that between now and the end of the week, we probably don’t really go anywhere, more or less just hanging around and looking for some type of clarity. The market breaking above the ¥138 level would be a massive victory for the US dollar, and could continue the longer term uptrend. That could also open up a move to the ¥140 level rather quickly, but we have to have some type of momentum enter the market to make that a reality anytime soon. As things stand right now, that just isn’t enough momentum for a move like that to happen very easily from what I can tell. Regardless, I don’t have any interest in shorting this market, I see far too many reasons underneath why the market could bounce or at the very least stabilize.

For a look at all of today’s economic events, check out our economic calendar.