USD/JPY Weekly Price Forecast – US dollar back and forth against yen for the week

The US dollar has gone back and forth during the week, breaking to the upside and then pulling back. Ultimately, this is a market that also features a lot of support during the previous week as we formed a huge hammer. Short-term pullbacks continue to offer buying opportunities but if we were to break down below the hammer from the previous week, the market will more than likely unwind as the 61.8% Fibonacci retracement level will have given way. Alternately, if we break above the candle stick from this week, then it shows not only a supporter bottoming, but it also shows more bullish pressure stepping up into the market.

USD/JPY Video 15.07.19

If we do break out to the upside I suspect that the 109.70 level will be targeted as it is where we broke down previously. The 200 week EMA sits just above there, so I think that there are market will respect that area as resistance. However, if we were to break above there, the market could go much higher, perhaps trying to reach towards the ¥111 level. Short-term pullbacks continue to offer buying opportunities, as this market looks to be forming a bit of a base. However, keep in mind that this market does have a lot of influence on the outside as far as risk appetite is concerned, so if stock markets rally that could help this market going forward. However, if we were to break down below the candle stick for the week, then it’s likely that we will continue to break down towards the 100% Fibonacci retracement level. All things being equal though, I do like the bullish move.

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