The US Dollar might reach 145.00 against the Japanese Yen, but it’s unlikely to push past the tougher barrier at 145.50. Over the long run, the Dollar is expected to move between 143.00 and 145.50. Last Friday, predictions of a further Dollar drop were incorrect, as it bounced back to 144.48. This momentum indicates a possible test of 145.00, but reaching 145.50 seems unlikely. There is support around 144.00 and 143.50.

Dollar Recovery and Shift in Perspective

Earlier, after a significant drop, most believed the Dollar wouldn’t recover and might fall to 142.20. This changed when it rose above 144.40, showing the potential for a wider range between 143.00 and 145.50. Before making financial decisions, it’s crucial to do thorough research. The source of this information and the author are not responsible for any inaccuracies or omissions. Investing comes with significant risks, and any losses are the investor’s responsibility. This information should not be seen as a recommendation, and it’s wise to consult financial advisors before investing. The recent rise of the US Dollar against the Yen, particularly the jump to 144.48 last week, surprised many who expected a fall to 142.00. This reversal caught several traders off guard, especially since earlier weakness suggested a downward trend. Now that the Dollar is gaining strength again, moving towards 145.00 seems more plausible than it did just over a week ago. However, we believe that resistance near 145.50 will likely hold, as it has in the past. We’ve seen consistent resistance in that area—previous attempts to push through have failed. Therefore, it makes sense to focus on a range between 143.00 and 145.50 in the near term. While recent momentum supports short-term interest, the overall trend suggests a broader consolidation.

Current Support and Resistance Levels

Support levels remain at 144.00 and slightly lower at 143.50. These are critical to monitor in the upcoming sessions. A drop below either could revive expectations of a decline towards 142.20. If momentum weakens, this downside scenario may gain traction. What seemed like a fading Dollar story has changed, at least for now, due to recent price changes rather than shifts in the broader economy. For those trading short-term, this shift requires adaptability. We’ve expanded our expectations beyond previously narrower levels, reflecting this uncertainty. While recent trading favors Dollar strength, it’s essential not to assume this will continue without resistance. Higher resistance levels have held for a reason—previous tests have failed to break through. Current positions rely heavily on price movements around 144.00 to 145.00. If support breaks, past assumptions of weakness could return swiftly. Future movements will likely depend on incoming data and market sentiment. If consolidation remains but volatility is low, we might see extended periods of sideways movement, with any push towards the extremes serving as reaction points rather than genuine breakouts. It’s common to see a few failed attempts as traders adjust their risk. At these levels, we recommend a reactive approach, especially when price action aligns with known support or resistance areas. It’s more effective to counteract sharp moves into those zones rather than chase after them. Create your live VT Markets account and start trading now.

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