USD/JPY Weekly Price Forecast – US dollar all over the place against Japanese yen

The US dollar’s been all over the place against the Japanese yen during the week, contradicting the shooting star from the previous week that looked all but settled to break this market down. Keep in mind that this pair is highly risk sensitive, so that has to be taken into account.
Christopher Lewis
USD/JPY weekly chart, September 30, 2019

The US dollar has gone back and forth during the course of the week, showing signs of both bullish and bearish behavior. By doing so, the market looks very confused to say the least. There is a ton of resistance just above at the 50% Fibonacci retracement level but it certainly looks as if we are going to try to test that level. It should also be noted that the 200 day EMA is in that neighborhood as well, which obviously you can see on the weekly chart. This is a market that has made a significant bounce back as of late, but the fact that we have a hammer that is preceded by a shooting star tells you everything you need to know about this market, it’s confused. But then again that’s a microcosm for the rest of the markets around the world isn’t it?

USD/JPY Video 30.09.19

At this point in time it’s probably going to be best to trade this market from a shorter-term standpoint, as I suspect we have more consolidation ahead. However, if we did see some type of scenario where global growth looked stronger, the US/China trade situation was resolved one way or the other, and then of course Brexit settled down, we could get an explosive move to the upside. I know it’s asking a lot, but quite frankly those are just a handful of the issues right now. Oh, and then there is that impeachment thing in the US. Simply put, we are trading on headlines and going back and forth which of course is not conducive to longer-term trading in a risk based currency pair.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US