USD/JPY Forecast – The US Dollar continues to decline against the Yen

US Dollar vs Japanese Yen Technical Analysis

The US Dollar was slightly lower against the Japanese Yen in the early hours of Thursday as we continue to see a lot of weakness, all things being equal, this is a market that is in the process of testing a major support line. And if that continues to be the case, then we have a situation where sooner or later we will have to make a bigger decision.

If we break below the ¥142 level, this market is likely to break down. If that’s going to be the case, then I think we see a lot of risk in terms of behavior, and that being said, I think you also need to pay attention to the ¥145 level above because a break above that would be a very optimistic. In this environment, you could really start to see traders go higher and start pushing towards the ¥150 level.

At this point, it will be interesting to see how this plays out, but there is definitely something wrong with the appetite for risk around the world right now. And while the yen-dollar pair is only one part of that equation, it’s a pretty strong one right now. When you look at the longer-term chart, you could make an argument that we could go down to ¥125 if we have enough time. Obviously, that’s not going to happen anytime soon, but it’s something that, if we go into some kind of panic, it very well could be the case.

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This article was originally posted on FX Empire

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