USD/JPY Weekly Price Forecast – US Dollar Continues to Pressure Resistance

The US dollar has rallied again during the course of the week to reach towards the top of the candlestick from the previous week, showing signs of resiliency. At this point, the market looks as if it continues to look at the ¥112 level as a major resistance barrier, that extends to the ¥112.50 level above. Once we break above the ¥112.50 level, then it is likely that we will see this market go much higher.

USD/JPY Video 11.10.21

As I record this video, it does look like we are stalling at roughly ¥112, so we may have some work to do but clearly this is a very good look as we have a serious attempt to break out and therefore, I think we will have very choppy behavior until we make up our mind collectively, but it certainly looks as if the buyers are stretching this market. Pay close attention to the interest rates in the United States because that will have a major influence on where we go next in this market. The differential between JGB yields in Japan and the 10 year yields in America continues to be a major driver.

If we can break above the ¥112.50 yen level, then it opens up the possibility of a move towards the ¥115 level. On the other hand, if we turn around a break down below the ¥109 level, then it would change the overall trend and momentum of the market. All things been equal, it looks as if we continue to find plenty of reasons to go higher but we do not quite have that clarity yet for a “buy-and-hold” position.

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