USD/JPY Weekly Price Forecast – Dollar Continues To Test ResistanceThe 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.
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.
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