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

The biggest problem that this pair faces right now is that it’s the end of the year. Because of this, I think that the market will continue to go back and forth in the short term type of environment. Longer-term traders need to pay attention to the ¥112 level, and the ¥115 level. Those two areas offer a roadmap as to where we are going next, with a break down offer an opportunity do fall down to the ¥110 level, and then possibly the ¥108 level. Otherwise, if we break above the ¥115 level, then we could go to the ¥120 level via the ¥118 level.

USD/JPY Video 17.12.18

Ultimately, this is a market that will probably be best avoided for a longer-term trade until January, when liquidity comes back into the market. I would point out though that the ¥115 level is massive resistance and has held several times. Overall though, there are a lot of analysts out there that believe the Japanese yen will strengthen during the year. It’ll be interesting to see whether or not that happens, but I would point out that Jerome Powell has recently sounded a bit softer than previously, and of course this coming week we have a statement coming out of the Federal Reserve, and any hint of dovish attitude may send this market much lower, perhaps breaking down below support. At this point though, I would anticipate very little between now and next year for longer-term traders. This does, however, make an excellent scalping range bound environment.