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

The USD/JPY pair rallied a bit during the week, as we continue to grind back and forth between the ¥108 level on the bottom and the ¥110 level on the top. All things being equal, the market looks likely to continue grinding forward until we can get some type of certainty globally.
Christopher Lewis
USD/JPY Weekly Price Forecast - Dollar Continues To Test Resistance

The Dollar has rallied a bit during the week, reaching towards the 200 week EMA and the ¥110 level. The ¥110 level has been extraordinarily resistive, and therefore if the market does break above there it would be an extraordinarily bullish sign. That being said, we have not been able to crack above it so more consolidation would be likely. I am watching the currency pair after the agreement has been made public between the Americans and the Chinese, and we are still struggling to get higher and break out. That in and of itself is an ominous sign that we could break out on that news.

USD/JPY Video 16.12.19

I anticipate that the next couple of weeks will continue to be very choppy and sideways, trying to determine some type of clarity going forward. If we do break out to the upside it’s likely that the market goes to the ¥111 level, and then eventually the ¥112.50 level. To the downside, if the market were to break down below the ¥108 level, then it’s likely that we could go to the ¥107 level after that. All things being equal, this is a market that continues to be very difficult from a longer-term standpoint and looks likely to be held in the realm of short-term trading as far as range bound systems are concerned. At this point, the market is very likely to offer a lot of sideways action for those who are willing to drill down to shorter time frames, but longer-term traders will probably continue to be stymied.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.