USD/JPY Weekly Price Forecast – US dollar continues to grind

The US dollar went back and forth against the Japanese yen during the past week, finishing slightly negative. However, it doesn’t really matter as we continue to try to figure things out. With the stock markets on the precipice of a major break out but not quite ready to do so, it makes sense that this market continues to go sideways as well. If we can break out above the top of the candle stick from the previous week, then it’s possible that we could go to the ¥113.50 level. That’s an area where we’ve seen a lot of selling, so I suspect it will be difficult to break above there. However, if we break down below the candle stick from four weeks ago, then we could drop down to the ¥110 level.

If we break down below that level, then we could go down to the ¥190 level, and then eventually the ¥180 level. Overall, I think that this market probably breaks out to the upside but we need help from the stock markets and a bit more of a “risk on” move. It seems to me that market participants will continue to slap this thing back and forth, so quite frankly if you wish to play the Japanese yen or the US dollar, you may be better off playing them against the Australian dollar, Canadian dollar, or the like. Quite frankly, this pair does not have enough momentum.

Please let us know what you think in the comments below