USD/JPY Weekly Price Forecast – US dollar continues to consolidate against Japanese yen

The US dollar has gone back and forth during the week but has broken down from the same resistance barrier that we have seen. Ultimately, this is a market that continues to see a lot of trouble at the same levels after a less than clear Jerome Powell speech.
Christopher Lewis
USD/JPY weekly chart, August 26, 2019

The US dollar has continued to go back and forth during the week, reaching towards the ¥107 level before rolling over yet again. Because of this, ¥107 is an area that you should be watching as it has been crucial more than once. Ultimately, I think that this market really hasn’t decided much after the speech, and now is simply going to wait to see whether or not we can break out of the 200 point range that we had been in. To that point, the ¥105 level underneath continues to be massive support, so keep in mind that if we were to break down below there it could be a rather negative sign.

USD/JPY Video 26.08.19

I anticipate that we will probably go looking towards the bottom, and then perhaps try to break down below it. Ultimately, this is a market that continues to find plenty of reasons to struggle, as it is a risk barometer. With the global trade wars getting worse, and of course global growth slowing down, it looks to be like the Japanese yen will still be in demand. That doesn’t mean that it’s an easy longer-term trade, but clearly we have much more negative pressure out there than positive right now. If we were to break down below the ¥105 level on a daily close, that does in fact open up the door to the ¥102.50 level, and then eventually the ¥100 level. To the upside, I don’t have much in the way of thought only because we would need good news to make that happen. There seems to be a massive shortage of that right now.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US