USD/JPY, USD/CHF and USD/MXN Forecasts – Dollar Rising Ahead of Fed Announcements

USD/JPY Technical Analysis

The US dollar initially pulled back against the Japanese yen during trading on Wednesday only to turn around and show signs of life again. The 160-yen level above is a barrier that a lot of people are watching because the Japanese have intervened there multiple times verbally and of course, we have the Bank of Japan doing its interest rate decision over the next 24 hours, so it’ll be a bit interesting to see if we could break above here ahead of that.

I’d be very careful here. The main reason I’m analyzing this pair is that we’re getting close to breaking a 1990 high, but perhaps more importantly, you need to be extraordinarily careful. This is a market that could hurt you if you get too big in. Short term pullbacks down to about 158 yen to me look interesting as buying opportunities.

The US dollar is rising against the Swiss franc but it’s also pressing up against significant resistance in the form of 0.79.

USD/CHF Technical Analysis

The US dollar is rising against the Swiss franc but it’s also pressing up against significant resistance in the form of 0.79. So, if we can break the 0.7950 level then I think we really take off.

It comes down to whether or not Jerome Powell sounds hawkish or dovish today. No change is expected but the Swiss most certainly going to remain dovish and of course threaten intervention if things get out of hand from a safety bid. So, I think we’re in the process of turning the trend around.

The US dollar is threatening the South African rand and the crucial 17 level where the 200-day EMA currently resides.

USD/ZAR Technical Analysis

The US dollar is threatening the South African rand and the crucial 17 level where the 200-day EMA currently resides. Breaking above that 200-day EMA could very well send this pair much higher and it could be a complete reversal of the trend just waiting to happen.

The US dollar is starting to strengthen in more of a safety bid, but it’s also worth noting that inflation has been somewhat sticky in the United States, while countries like South Africa have to worry about energy. We’ll see but it certainly looks like we’re going to threaten a breakout to the upside.