USD/JPY Weekly Price Forecast – US dollar breaks higher for the week

The US dollar has broken higher during the week, reaching towards the ¥108.50 area, and perhaps even more importantly, the ¥109 level. Looking at this chart, if we can break above there it’s likely that we could go much higher, perhaps reaching towards the ¥109.70 level. That is an area where we would see a lot of confluence of previous support acting as resistance, so don’t be surprised at all to see this market struggle. I think that if we can break above there though, it opens up the market towards the ¥111 level.

USD/JPY Video 29.07.19

Keep in mind that this pair is very likely to be sensitive to the S&P 500 and risk appetite overall as the Japanese yen is considered to be the “safest currency” out there. With that being the case it’s very likely that we are about to see is more consolidation but most certainly with an upward slant. It looks as if we are trying to break out to the upside and therefore I look at dips as an opportunity to pick up this pair “on the cheap.” Ultimately I do think that it is only a matter of time before the traders out there start getting involved in this pair to try to pick it up and shoot much higher. I think that the market is when you can’t sell until we break down below the ¥107 level, which would be a major break of support. At that point, the market then goes down to the ¥105 level which is the 100% Fibonacci retracement level. Currently, it looks as if the 61.8% Fibonacci retracement level is trying to offer some support.

Please let us know what you think in the comments below