USD/JPY, USD/CAD and USD/CHF Forecasts – US Dollar Trying to Turn Around Early

USD/JPY Technical Analysis

The US dollar has rallied a little bit against the Japanese yen during the trading session on Wednesday in the early hours. Whether or not that can continue remains to be seen, but I do look at the 160-yen level above as a major barrier. In fact, when you go above the 160-yen level to the 160.40-yen level, there is a massive barrier. Clearing that breaks through a swing high that goes all the way back to 1990, so I am definitely watching this one.

Interest rate differential continues to favor the US dollar, therefore making it more bullish than not. I like buying dips; we may have just gotten another opportunity.

USD/CAD Technical Analysis

The US dollar is starting to rise a little bit against the Canadian dollar at the 50-day EMA and perhaps more importantly, the 1.3750 level. This is an area that previously had been resistant, now offering support.

Oil markets starting to price in the idea of peace, that does work against the Canadian dollar a little bit. The interest rate differential favors the United States, although not by a huge margin. So, I think you continue to see a lot of sideways action, and we just got a little oversold. A bounce from here certainly makes sense.

USD/CHF Technical Analysis

The dollar is bouncing against the Swiss franc. I think this one is setting up for a potential longer-term trade; we will just have to wait and see. The 0.78 level, an area that was previous resistance, now offering support.

All things being equal, this is a market that I think continues to see a lot of buying on the dips for the interest rate differential, but there is also a lot of concern out there. That in and of itself could be a reason to own the Swiss franc. That being said, the Swiss National Bank is not going to let this thing get out of control, and I think that is something that you need to keep in the back of your mind as well. Massive interest rate differential between these two; I still favor the US dollar, especially if we get good news out of the Middle East.

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