USD/JPY Weekly Price Forecast – pair very choppy for the week and going nowhere

The US dollar has been very choppy against the Japanese yen during the week, as we hover around the ¥111 level. This is a market that is very risk sensitive, but at the same time the US dollar has been enjoying strength against other currencies, which has a bit of an effect here. That may explain why we have a relatively neutral candle, and a real lack of momentum. The ¥109 and level underneath is massive support, while the ¥113 level above is massive resistance. I believe that the market should continue to bounce around in that area for the remainder of the month, and it currently we are essentially what you could deem as “fair value.”

My experience tells me that it’s difficult to take the trade in these areas, so I would probably wait for some type of impulsive daily candle before placing a trade and aiming for one of those outer boundaries. Looking at the markets, I think that we are going to be very hard-pressed to find a longer-term trend follow based upon the last several weeks. Keep in mind that the trade war fears could send this pair lower, just as a resolution to those problems between the United States and China could send this pair much higher. Beyond that, I don’t see any clear path either way.

USD/JPY Video 13.08.18