USD/JPY Weekly Price Forecast – US dollar breaks down against Japanese yenThe US dollar trying to break back into the previous resistance barrier that starts at the ¥111.50 level, but we rolled over rather significantly to break towards the ¥110 level.
The US dollar has broken down a bit during the week, reaching towards the ¥110 level. This is a very bearish weekly candle stick, and it does suggest that perhaps we are going to continue to go a bit lower from here. If that’s going to be the case, it’s very likely that we will see a move through the ¥110 level, and perhaps down to the ¥108 level given enough time. That being said, the ¥108 level is naturally going to be a massive support level that is almost impossible to break through. Rallies at this point are to be treated with a bit of suspicion until we can break above the ¥112 level, which is a significant top to the resistance zone.
USD/JPY Video 25.03.19
Looking at the chart, it’s obvious to me that something negative has happened this week, not the least of which would be that the Federal Reserve has suggested that there will be no interest rate hikes between now and the end of the year. That was the “final nail in the coffin” when it comes to whether we are going to see bullish or bearish attitudes in the market when it comes to the greenback. As the greenback struggles, and of course the “risk off” attitude would come into the market, it would make sense that the dollar would lose against the Japanese yen as it is considered to be safety. Overall, this is a market that looks like it is ready to roll over, so at this point sellers seem to be stepping up their game and trying to break through the important ¥110 level.
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