USD/JPY Weekly Price Forecast – US dollar continues to power higher

The US dollar initially fell during the week but as you can see shot straight up in the air like it was fired out of a cannon against the Japanese yen. With that being the case, it’s obvious that the buyers are pressing the issue and it looks as if it is only a matter of time before the ¥112 level gets broken. If that’s going to be the case, it’s very likely that we will continue to see this market go much higher, perhaps to the ¥113.50 level. That’s an area where we had seen massive selling in the past so it would make sense that the market would be attracted to that level.

USD/JPY Video 15.04.19

To the downside I still see the ¥110 level as crucial, so is very likely that we will continue to find buying pressure near that level. If we broke down below the bottom of the candle stick for the week that would obviously be a very negative sign, but I don’t think we are going to see that happen anytime soon. It’s very possible that what we are about to see is an explosive “blow off top.” That will definitely be true if the S&P 500 takes off to the upside as the two tend to be very highly correlated.

All things being equal it’s very likely that we will continue to see buyers on dips though, and that’s my main thesis. Quite frankly, it’s not Les we get some type of major meltdown in the stock markets that I’m concerned about shorting.

Please let us know what you think in the comments below