USD/JPY Weekly Forecast – US Dollar Plunges Toward Trend Line

USD/JPY Forecast Video for 18.12.23

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has fallen rather significantly, crushing buyers as we have tested a major trend line. All things being equal, the market is likely to continue to see a lot of buyers looking at this area as a potential opportunity, but all things being equal, this is a situation where we need to see the Bank of Japan and what they are going to do going forward as the normalization of interest rates is what people are waiting to find out whether or not happens. That’s Tuesday and next week, and I think by then we will have an idea as to the longer trajectory.

If we turn around and rally, then the market could go looking to the ¥145 level. On the other hand, if we break down below the ¥141 level, then we could test the ¥140 level. Ultimately, I think if we break down below there if the DOJ does normalize and then we could go down to the ¥136 level. Either way, I think this is a situation where you need to be very cautious, but I think this next week could give us an idea as to whether or not we are going to bounce from here, or if we are going to break down from here.

I think we are about to make some big decisions, as the Federal Reserve has suggested that they are getting ready to pivot. All things being equal, this is a market that I think has a big decision to make over the next week, so therefore you need to pay close attention to what the next candle looks like, because that may give us “a heads up” as to where we go in the first few months at 2024.

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