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