USD/JPY Forecast – US Dollar Quiet Against Yen Early on Wednesday

US Dollar vs Japanese Yen Technical Analysis

You can see the dollar/yen has done very little during the trading session in the early hours on Wednesdays as we are hanging around the 150 level. Underneath, we do have plenty of support and I think there are multiple areas that you can look for value.

The first one would be the 148.50 yen level, an area that previously has been resistant. We have the 50 day EMA and we have the 147.33 level underneath there. In general, this is a market that continues to enjoy a positive swap with most brokers at least. Therefore, a lot of people are just simply hanging on to it and getting paid. At the end of the day, it is probably worth noting that it is Wednesday, and Wednesday of course is, for most brokerages, a double swap.

So, with that, I do think that we have the possibility of a little bit of a move higher during the day, but we also have the FOMC meeting minutes coming out later in the day, which could cause some noise. Nonetheless, I don’t know that there’s going to be a huge surprise there, unless maybe there was some type of significant debate on whether or not we should start seeing rates drop in America right away. I don’t know if that changes a whole lot. Above we have the 152 yen level. That has been a significant swing high, and I do think that is a potential situation of FOMO trading entering the fray once we break that high.

Either way, this is a market that I think short-term pull banks continue to attract a lot of attention. And you certainly don’t want to buy the Japanese yen as the Bank of Japan is certainly nowhere near tightening monetary policies. So, with all that being said, I think it’s steady as she goes and each dip should be looked at as a potential buying opportunity.

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