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

The US dollar rallied a bit during the week, breaking above the ¥110 level, before giving back a bit of the gains. At this point, it appears that this level is crucial, and therefore I think that we have choppiness ahead of us.
Christopher Lewis
USD/JPY weekly chart, February 11, 2019

The US dollar initially tried to rally during the trading week, and even broke above the ¥110 level at one point. By doing so, we had shown real resiliency, but we also have seen a lot of resistance at the top of the nasty hammer that was part of the flash crash. Because of this, and the fact that the 61.8% Fibonacci retracement level sits just above, I think it is very likely that we continue to see a lot of hesitation in this area. Looking at the daily chart, you can see a lot of indecision and I think that’s the biggest problem with this pair right now.

USD/JPY Video 11.02.19

Looking at the chart, I think we are in for a tough couple of weeks, and a longer-term trader will probably be better served by drilling down to the daily charts to see some type of impulsive candle. If we rally, I suspect that the next major resistance level is near the ¥112 level. Otherwise, if we break down from here I think we will probably go looking towards the ¥108 level which is massive supportive. I am getting conflicting signals based upon different time frames, which typically means we are building up for a massive move. That being said, it is probably best for the longer-term trader to simply avoid this pair as there are much easier trades to take out there. The risk to reward in this market simply isn’t going to be there quite yet.

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
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.
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.