USD/JPY Weekly Price Forecast – US Dollar Continues to Grind Away to The Upside Against Yen

The US dollar has rallied a bit during the course of the trading week, as we continue to consolidate overall. The ¥115 level above continues to be a major barrier, and I think that eventually we break above it. If we do, that is going to kick off the next “buy-and-hold” set up, but right now it does not look like we are ready to make that happen. I anticipate that there will be a significant amount of noise over the next couple of weeks, but at this point in time the ¥112.50 level underneath could be psychologically important, and of course the ¥110 level is a massive support level.

USD/JPY Video 01.11.21

The Japanese yen is being sold off against almost everything, and despite the fact that the US dollar has been hammered against multiple currencies, which has not been the case here. In other words, this chart is probably more or less an indictment on what is going on with the Japanese yen more than anything else. After all, the Japanese yen has been one of the few currencies weaker than the US dollar, as we have seen over the last few weeks.

All that being said, this move has been a bit parabolic so killing a little bit of time appear to digest the gains makes quite a bit of sense. Quite often markets will continue to go back and forth in order to get used to the idea of being at these lofty levels, and I think that is exactly what we are seen at this point in time.

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