USD/JPY, USD/CAD and EUR/USD Forecasts – US Dollar Gives Back Some Strength

USD/JPY Technical Analysis

The U.S. dollar initially rallied against the Japanese yen, but it looks like we are running into a little bit of trouble here at the 50-day EMA. We have pulled back, but I don’t know if it changes the overall analysis of this market that I’ve been talking about over the last couple of days.

It looks like we did, in fact, find some type of floor in the form of the 200-day EMA and possibly the 152-yen level. So even though we are rolling over a little bit, the fact is that we had such a powerful and strong day during the previous session on Wednesday that I think maybe we’re going to pull back and try to find buyers again.

This is a pair that still pays you interest if you hold to the long side and I do think that will continue to support it on dips.

USD/CAD Technical Analysis

The U.S. dollar gave back some of its recent gains against the Canadian dollar, but it looks like it’s trying to turn right back around. I’ll be watching the 1.3750 level. If we can break above there, that opens up a fresh leg higher.

Ultimately, I do think that maybe a little bit of sideways and grinding action would be called for after the recent pop higher, or perhaps even some sideways action, with 1.35 obviously a major floor in this currency pair at the moment.

EUR/USD Technical Analysis

The euro has been very tight and very quiet during the trading session on Thursda,y with really the biggest news coming out would be unemployment claims, the weekly version, in the United States.

Because of this, I think it makes sense that we’re probably going to see this pair just grind back and forth around 1.18 as we wait for the PCE core price index coming out on Friday. If we break down from here, we could find this pair reaching towards the 1.16 level. If we rally, I suspect we could try to get back to 1.19.