USD/JPY Weekly Price Forecast – US Dollar Continues To Consolidate Against YenThe US dollar fell during a large part of the week, but then turned around to show signs of life towards the end as we continue to press up against a major resistance barrier.
The US dollar has been all over the place during this past week, as we try to figure out where were going next. The pair is highly sensitive to the US/China trade situation, as the market will certainly have a lot of influence due to headlines and the occasional speculation out there. All things being equal, if we can get some type of positive sign out of the US/China trade situation, this pair should rally. From a technical analysis standpoint, we are sitting right at the verge of major resistance.
USD/JPY Video 18.11.19
Looking at this chart, we are pressing the 61.8% Fibonacci retracement level, which of course is an area that attracts a lot of attention in and of itself. We have been pressing this area for some time, so at this point it’s likely that we will eventually bus through there. We need some type of good news to send this market to the upside though, and if we do get that breakout, we could go looking to reach the ¥112.50 level given enough time, but there is a small gap at the ¥111 level that will also be targeted. So far, every time this market has pulled back, it looks as if buyers have come in to pick up a bit of value, and I do think that it’s only a matter of time before we do reach to higher levels. In fact, when you look at the weekly chart it’s very plausible to suggest that we are simply consolidating between ¥105 on the bottom and ¥115 on the top.
Please let us know what you think in the comments below