(MENAFN- Daily Forex)

• The US dollar has fallen pretty significantly against the Japanese Yen during trading on Friday as we have tested the crucial 50-day EMA.
• That being said, we have the 200-day EMA just above offering resistance sitting right around the 148 Yen level.
• All things being equal, this is a market that I think continues to see a lot of back and forth chop, but if we could break above the 148 yen level, then it could open up a move to the 151 yen level.

If we were to turn around and break down below the hammer from the Thursday session, that would be very negative, and it could send the US dollar down to the 145 yen level.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Sideways Chop Possible

All things being equal though, this is a scenario where I think we continues to see a lot of sideways choppy action and the interest rate differential of course favors the US dollar, but we also have a lot of people out there looking to see if the federal reserve will cut rates later this year. And that is part of what has driven this pair lower. The catch of course is that the interest rate differential is still wide enough to drive a truck through in favor of the US dollar.

EURUSD Chart by TradingView

The Bank of Japan has to worry about people buying Japanese debt, there's been a few days here and there where there's been no bid. And if they have to step in and buy Japanese debt, that is quantitative easing. It is also a risk sensitive pair. So, if we start to see a major“risk off” move around the world, then that does benefit the yen, regardless of the interest rate differential. So, you have to keep all of these things in the back of your mind. But I like the idea of buying a breakout above that 148 yen level.

Want to trade our USD/JPY forex analysis and predictions ? Here's a list of forex brokers in Japan to check out.

MENAFN18082025000131011023ID1109943603