USD/JPY Weekly Price Forecast – US dollar choppy against yen

The US dollar has gone back and forth during the week, as we continue to dance around the ¥108 level. By doing so, the market looks very likely to hang about this area, as it is not only an important area based upon previous action, but it is also where we find the 61.8% Fibonacci level hanging about. With that in mind, I believe that we could get a bounce but I would be remiss if I didn’t point out that the market simply doesn’t seem to have much in the way of directionality.

USD/JPY Video 10.06.19

While I am analyzing the weekly chart, I keep referring to the daily chart as you have a lot of noise here for the weekly chart. Overall though, I do think that we have the opportunity for traders to go back and forth in a range bound system more than anything else. For the weekly trader, that could mean eventually reaching towards the ¥112 level. However, if we were to break below the 61.8% Fibonacci retracement level, at least on a daily close, then the weekly trader would be looking to sell this market and aim towards the ¥105 level as it would be the 100% Fibonacci retracement of the most recent bounce.

Remember that this pair tends to move with risk appetite overall, so pay attention to the S&P 500 and other such risk assets. In general, if it rallies that will help this pair, but Jerome Powell recently suggesting that monetary policy may loosen has done the US dollar no favors.

Please let us know what you think in the comments below