USD/JPY Weekly Price Forecast – US Dollar Choppy Again

The US dollar has gone back and forth against the Japanese yen during the course of the week, as the ¥110 level continues to attract a lot of attention. Ultimately, this is a market that I think will eventually see some type of decision made, but in the meantime, it looks like we are simply twiddling our thumbs trying to figure out what to do next. Because of this, I am not overly excited about putting too much money to work, at least in this general vicinity. With this being said, the market is going to continue to see a lot of choppy behavior and therefore I think you have to be cautious about doing anything other than simply trading in short-term range bound moves.

USD/JPY Video 30.08.21

The ¥110.75 level offers a significant resistance barrier, and then after that we would have to pay close attention to the ¥112 level, which is a major barrier as well. On the other hand, if the market was to turn around and fall, then the ¥109 level would offer significant support. Breaking down below that level could open up a move down to the ¥107.50 level, possibly down to the ¥105 level after that. All things being equal, this is a market that I think continues to be very noisy, and right now I look at it as a market that is difficult to trade from a longer-term standpoint until we break out of this range I have just mentioned. At this point, this is more or less a short-term traders type of scenario from everything that I see on the charts.

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