USD/JPY Forecast – US Dollar Continues to Consolidate Against The Yen

US Dollar vs Japanese Yen Technical Analysis

The U.S. dollar has bounced just a bit during the early hours on Wednesday as it looks like we are trying to sort out whether or not we are going to consolidate and bounce or if we are going to consolidate and break down.

With that being said, the market is likely to be very noisy and very difficult to get your hands on. But I do have a couple of areas that I’m watching. If we could turn around and take out the 150 yen level, then we could really start to pick upward momentum as the carry trade would be coming back.

That being said, if we were to turn around and break down below the 144 yen level, then we could see the market really start to fall apart. With this being said, the market is going to remain very noisy. And I also think that we have the situation where it’s quite possible that range bound traders will come in and take advantage of this, but it certainly looks like we have stabilized a bit. And I think that’s the thing you need to take away from here.

Late in the day on Wednesday, we get the FOMC meeting minutes. And I think a lot of people will be paying close attention to what the Fed’s going to do going forward. If we do, in fact, see something shocking that could really move the market, but if it’s what people think it’s going to be, then we still have to ask the questions about the carry trade, whether or not it can come back. Right now, it looks like we’re in this just somewhat malaise of a market.

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