USD/JPY, USD/CAD and USD/CHF Forecasts – Joint Intervention Tests 155 Support in USD/JPY

The US Dollar has plunged against the Japanese Yen to kick off the trading week as it has been acknowledged that the United States and Japan both have intervened in the currency markets to save the Yen. The Japanese Yen is a funding currency for a lot of borrowing around the world, and the concern would be that this thing could spiral out of control and cause chaos. That being said, we've seen interventions previously.

This is the first time that the Americans have acknowledged being involved in it, and it is worth noting that the market stopped right at the 155 Yen level. So, this was a big support level that has held so far. At this point, the question is whether or not the market can bounce. We'll have to wait and see, but it already has done it a couple of times by fighting back against the intervention.

The US Dollar has rallied against the Canadian Dollar to pierce the 50-day EMA early on Monday and does look like it continues to see a lot of support in the 1.40 level. The 1.40 level is a round figure that has been both support and resistance, and it's also right around the 38.2% Fibonacci retracement level. It looks like it is stable here from the recent price action.

The US Dollar has rallied a bit against the Swiss Franc during the session as well, and it is looking at the 50-day EMA as potential support. Overall, this is a market that looks like it's still bullish despite the fact that we did have a couple of bad days. We are in a bit of a channel, and the 0.8150 level seems to be an area that has attracted a lot of attention as of late.

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