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USD/JPY Weekly Price Forecast – US Dollar Breaks Support

By:
Christopher Lewis
Published: Nov 6, 2020, 16:51 UTC

The US dollar fell rather hard during the week after spiking above ¥105. This has been a wild week as the US elections of course cause a lot of noise.

USD/JPY

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During the week where we had US presidential elections, a FOMC meeting, and of course the Non-Farm Payroll numbers, it is not a huge surprise to see that the USD/JPY pair was all over the place. That being said, at the end of the week it looks like we are going to continue to pressure to the downside, and therefore it looks like a continuation of the overall negativity that we had seen previously. The market looks very likely to reach down towards the ¥102 level, but that does not mean we get there overnight.

USD/JPY Video 09.11.20

Looking at this chart, I would anticipate that we may get some type of bounce in this pair, perhaps back towards the ¥104 level before the sellers come back in and start pushing lower. I also recognize that there is probably a significant amount of resistance between the ¥104 level and the ¥105 level, as there had been so much trading in that range previously.

The ¥102 level was where we started to see serious buying pressure after that massive spike higher, and it certainly looks as if that might be what we are aiming to retest, something that typically happens over the longer term given enough time. One thing is for sure here, buying this pair is not an option, not anytime soon at least. I believe that this is a market that continues to offer “sell the rallies” type of situations, but it is probably easier to do on a daily timeframe or perhaps even a four hour chart as opposed to the weekly timeframe.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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