USD/JPY Weekly Price Forecast – US dollar bounces from support again

The US dollar continues to show signs of choppiness and volatility as the ¥105 level has offered significant support. Any rally at this point looks likely to roll over, and as a result I think that the ¥107 level continues offer major resistance. You can see that the highs are getting slightly lower though, so I think we continue to see a lot of negativity. Beyond that, we also have to worry about the geopolitical and trade war situation. The Japanese yen is a safety currency so it isn’t much of a surprise that it got picked up.

USD/JPY Video 02.09.19

Rallies at this point continue to be sold, but from a longer-term perspective we need to close on a daily chart below the ¥105 level to start selling for a much bigger move. I think at this point it’s only a matter of time before that happens, and it opens up the possibility of the ¥102.50 level being targeted, and then possibly the ¥100 level. Once we get to that area though, you need to be very concerned because the Bank of Japan will more than likely step in one way or another. Remember, the Bank of Japan is one of the quickest central banks to get involved and jump into the market. I suspect the ¥100 level will be what finally sets them off. If we were to close above the ¥107 level on a daily chart, that could be a change of attitude in the market, but it seems very unlikely without some type of really good news.

Please let us know what you think in the comments below