USD/JPY Weekly Price Forecast – Dollar Continues To Face Resistance

The US dollar initially rally during the trading week, reaching towards the ¥110 level again. Looking at this chart, it’s obvious that the 200 week EMA is starting to cause issues. Ultimately, this is a market that looks as if it is consolidating but if we can break above the ¥110 level it’s likely that the US dollar will go looking towards the ¥111 level which is the scene of a major gap, and then eventually the recent high at the ¥112.50 level. Ultimately, this is a market that will be based upon the US/China trade deal and of course the overall risk appetite of the world.

USD/JPY Video 23.12.19

That being said, the market is very choppy and very difficult and the time a year course isn’t going to help. The holidays are notoriously choppy and quiet for Forex markets, so don’t be surprised at all to find this pair here again at the end of the next week. If we can break above the 200 week EMA and the ¥110 level, I anticipate that there will be a fresh flush of money into the market. To the downside, if we were to break down it looks likely that the 100 day ¥0.50 level continues offer plenty of support. If we were to break down below there it’s likely that the market could continue to go much higher. This being the case, I believe that it’s going to be difficult to trade this market from a longer-term standpoint until the beginning of the year, when more money comes back in.

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