USD/JPY Weekly Price Forecast – US Dollar Continues to Consolidate

The US dollar has gone back and forth during the course of the week, as we continue to hover just below the ¥110 level. The market is likely to continue looking at this range as something to stay in, and as a result it is likely to be difficult to trade from a longer-term standpoint, but we could be looking at a nice opportunity for short-term traders in this general vicinity with the ¥110 level being a bit of a magnet for price.

USD/JPY Video 23.08.21

The 109^th yen level underneath has offered support, just as the ¥111 level offers resistance. Ultimately, this is a market that I think continues to see a lot of choppy behavior, as we are trying to figure out where we are going from a risk appetite standpoint. The 50 week EMA is trying to cross above the 200 week EMA which of course is a very large, round, psychologically significant indication of trend, but quite frankly I think this is a market that is going to continue to just hover this general vicinity, at least until we get some type of clarity with the global growth situation.

Right now, I think that this market is going to continue to be difficult to hang onto, but I think at this point in time it is difficult to throw a ton of money into the market. The market will continue to be more of a short-term venture from what I can see, with more of a possible move to the downside than anything else. Keep your position size reasonable and keep to the smaller time frames.

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