USD/JPY Outlook As Dollar Weakens Against Major Currencies
USD/JPY seems to be in control of the bears after the shift in market structure that I mentioned in last week’s analysis. The pair extended its losses on Monday as the dollar weakened against the Japanese yen.
At press time, the dollar strength index was down 0.07% for the day. This caused a surge in not only the yen but also in the euro and the British pound. Consequently, the dollar to yen rate also slipped by 0.4% till press time.
There seems to be a huge supply above the 150 level, as the bulls are currently struggling to break above this level. However, the latest technical analysis points toward another bounce before the bearish continuation.
After two rejections from the 152 resistance in the last 13 months, the JPY/USD forecast is not looking very bullish. As a result, the most likely scenario could be a retest of the upward trendline around 146.
However, nothing goes up or down in a straight line and hence, there could be another retest of the 150 level before another move down. A break below 147.3 will confirm the bearish scenario.