Created on March 06, 2026

The US dollar initially plunged against the Japanese yen only to turn around and show signs of strength. By doing so, if the market were to break above the 158-yen level, the barrier just above, it has 200 pips to chew through before it makes a significant move, unless there is some type of external shock.

Keep in mind that if we clear the 160-yen level, it is potentially a massive long-term move as we would be breaking through resistance all the way back from 1990, something that will rattle the markets. In that environment, I have a projected move to 250. That is why it is so important to get through that area for the dollar.

Anticipating Choppiness and Support Levels

In the meantime, I would anticipate a lot of choppiness, a lot of pullbacks, but those pullbacks continue to get bought into as the Bank of Japan is stuck with its interest rate policy and the fact that the demographic is a major problem for Japan long-term. With this, the massive debt, they just are stuck.

I believe that any time this market pulls back you have to look at it as a potential buying opportunity like we saw, but I am also looking at the 156 yen level underneath as potential support right along with the 50-day EMA and then underneath there, you would have the 154-yen level.

I think eventually we do break out above that aforementioned 160-yen level, but it is going to be a massive effort that is going to be necessary to get through there. In the meantime, you are looking at a short-term buy on the dip scenario followed by a long-term buy and hold.

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

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Created on March 06, 2026

• The British pound has been very active and very noisy against the Japanese yen during trading on Thursday as we continue to hang around the 210-yen level.

• All things being equal, this is a market that I think continues to see a lot of volatility based on the idea that quite frankly, we just don’t have a lot of clarity when it comes to risk appetite.

Keep in mind that this pair is highly sensitive to risk appetite, and of course the British pound itself has a much higher interest rate than the Japanese yen, so we need good news to get this going to the upside significantly. As far as the interest rate differential is concerned, yes, it is a market that pays you to hang onto it, but ultimately I think you have a scenario where people are just simply not sure what to do and if that’s going to be the case, then it’s likely that it is very difficult to put a lot of money into this market.

Technical Support and Upside Potential

A short-term pullback from here opens up the possibility of a drop down to the 208-yen level. Breaking below the 208-yen level opens up the possibility of a move down to the 205-yen level where the 200-day EMA currently sits.

If we turn around and break above the 212-yen level, then it would be very risk-on type of appetite opening up the possibility to a move to the 215-yen level. Ultimately this is a market that I think will be very volatile, very difficult, but given enough time should go higher based on risk appetite returning and of course interest rate differential, but in the meantime, we will get these sudden moves that drop the market only to turn around and see it whip straight back to the other.

Begin trading our daily forecasts and analysis. Here is a list of Forex brokers in Japan to work with.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The EURJPY pair provided several positive closes above %23.6 Fibonacci correction level at 182.05, to form a new extra support, providing a chance to recover some losses by its rally towards 183.20 as appears in the above image.

The main indicators’ contradiction might push the price to achieve extra gains, however the stability below 184.05 barrier forms a main factor for confirming the continuation of the negativity in the upcoming trading, therefore, we will keep waiting for gathering negative momentum that allows it to renew the pressure on 182.05 level, where breaking it will open the way for targeting new bearish stations that might begin at 181.55 and 181.10.

The expected trading range for today is between 182.05 and 183.65

Trend forecast: Fluctuating within the bearish track