The US Dollar may weaken against the Japanese Yen, with analysts watching a key range between 142.10 and 143.45. A crucial level is at 141.70, which currently offers strong support. If it breaks, further declines could happen. Recently, the US Dollar fell to a low of 142.41, which was unexpected as many anticipated stability. However, there hasn’t been a significant increase in selling pressure, suggesting the Dollar may stabilize unless it drops below essential support.

Resistance Levels

There’s noted resistance at 144.00, down from a previous level of 145.05. If this resistance breaks, the Dollar’s weakness might stabilize, but the overall outlook still leans towards potential decline. Though oversold conditions could lead to temporary consolidation, ongoing monitoring is essential. Currently, the Dollar has dropped more than expected against the Yen, going below levels where consolidation was anticipated. The move to 142.41 has not resulted in increased selling, indicating that downside momentum is contained for now. Support at 141.70 is significant. It has held in the past, showing it plays an important role beyond just the chart. If this level fails, traders should reassess their positions. While we haven’t seen major selling yet, that could change quickly if the Dollar weakens further. Weaker exchange rates might attract buyers when the market is saturated. However, any plans to buy near or just below the 142.10–143.45 range should focus on how the 141.70 level reacts. Without clear signs of strength there, buyers may enter too early. There’s no need to rush given the short-term volatility.

Market Strategy

Resistance around 144.00 has firmed, creating a ceiling that might be tested if the market stabilizes. The previous level of 145.05 is now out of reach, which is important. Regaining 144.00 doesn’t guarantee momentum has shifted but could indicate that weak positions are being cleared. In that case, it’s crucial to watch for a consolidation phase with a clear direction, especially on hourly closes. From our perspective, we should also monitor how USDJPY performs not just at the boundaries of this short-term channel but around volume-weighted averages that often matter in these conditions. A solid break combined with increased volume could quickly change positioning. Until we see that, and with uncertainty in direction, it’s wise to approach rallies with caution and view dips as short-term unless the 141.70 support is convincingly broken with high volume. Focus on reactions, not anticipations, for timing decisions. Create your live VT Markets account and start trading now.

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