Market Analysis Summary - USD/JPY, USD/CAD, and EUR/USD Forecasts

Author: Christopher Lewis

Published: February 19, 2026

Overview

The article discusses the current state of the U.S. dollar against three major currency pairs: the Japanese yen (USD/JPY), the Canadian dollar (USD/CAD), and the euro (EUR/USD). The analysis highlights recent trends, technical indicators, and potential future movements in these currency pairs.

USD/JPY Analysis

The U.S. dollar initially showed strength against the Japanese yen but faced resistance at the 50-day Exponential Moving Average (EMA). Despite a recent pullback, the author suggests that the market may have found support at the 200-day EMA and the 152-yen level. The strong performance in the previous session indicates potential for buyers to re-enter the market, suggesting that the overall bullish sentiment may still be intact.

USD/CAD Analysis

In the USD/CAD pair, the U.S. dollar has retraced some of its recent gains but appears poised for a rebound. The 1.3750 level is identified as a critical resistance point; a breakout above this level could signal a new upward trend. The author anticipates some sideways movement or consolidation around the 1.35 level, which is seen as a significant support level for this currency pair.

EUR/USD Analysis

The EUR/USD pair has exhibited tight trading conditions, with minimal volatility observed during the session. The upcoming U.S. unemployment claims report is expected to influence market movements. The author notes that if the pair breaks below the current levels, it could test the 1.16 mark, while a rally could push it back towards 1.19. The market seems to be in a wait-and-see mode ahead of the PCE core price index release.

Conclusion

The article provides a comprehensive technical analysis of the U.S. dollar's performance against the yen, Canadian dollar, and euro. It highlights key support and resistance levels, potential market movements, and the impact of upcoming economic data on these currency pairs. Traders are advised to monitor these levels closely as they navigate the current market landscape.