USD/JPY Weekly Price Forecast – US Dollar Breaks Out For The Week

The US dollar has rallied significantly during the week, reaching well above the ¥110 level, and even managed to hit the ¥112.30 level, an area that I have been talking about for some time as a potential target.

USD/JPY Video 24.02.20

The Japanese economy seems to be going into recession, so it makes sense that the Japanese yen has gotten hammered as of late. This might be a bit of a surprise for a lot of you who don’t pay attention to fundamental analysis, because in a type of fear when it comes to the coronavirus, people would think that the Japanese yen should get a bit of a boost. However, economic growth or slack will be one of the bigger movers of a currency.

I do believe that the ¥110 level being broken to the upside is a significant sign that we are going to go higher and reach towards the ¥115 level given enough time. We have been trading between ¥105 on the bottom and ¥115 on the top, and now that we have broken through the “midline”, it’s obvious that the market is probably going to try to go towards the highs again. This doesn’t mean that we get there tomorrow, and quite frankly I fully anticipate seeing a little bit of a pullback initially before turning around. I’m very interested in buying this market on some type of bounce from a pullback, but if we break above the top of the candlestick then I think the market is free to go higher at that point as well.