USD/JPY Weekly Price Forecast – Dollar Sitting at Fair Value Against YenThe US dollar has initially fallen during the week but then turned around to reach a little bit higher, as the market is sitting in the middle of what is the larger consolidation range.
Out of all of the pair is that I analyze at FX Empire, this is probably the one I am the most “neutral” of. This is because we have a couple of safety currencies fighting each other. Furthermore, stock markets are chopping around as well and that of course has a move in both directions. Ultimately, the market has massive resistance above at the ¥111 level, as well as the massive support down at the ¥105 level. I think at this point we are simply in the middle of the range and therefore it’s very difficult to imagine what to do next with any type of confidence. This is essentially a “50-50 ball” meaning that it could go pretty much anywhere.
USD/JPY Video 06.04.20
I will be paying attention to these two major levels and perhaps get involved at that point. Until then, I don’t know that there’s anything to do other than to simply wait. I will let you know what I choose to do in this pair at FX Empire, but I believe in the meantime we are simply sitting in the middle of a big range looking for some type of direction. Sometimes the best trade in a currency pair is to simply not traded, and I feel that’s essentially where were at with the USD/JPY pair. If you are a range bound trader, this might be a good market for you, but you need the market to move to the areas that I had talked about previously anyway. In other words, this is probably a hold at this point.