USD/JPY Weekly Price Forecast – US Dollar Continues to Show Choppiness

The US dollar has gone back and forth during the course of the week to show signs of magnetism towards the ¥109 level. That being said, the market is likely to see this candlestick as a sign of slight confusion after the massive shot higher from the previous week. The ¥109 level has been important in the past, so should not be a huge surprise to see it act a bit like a magnet now. Furthermore, the Friday session ended up seeing a horrible jobs number which of course played havoc with the bond yields coming out the United States. That has a massive influence on this market, so the volatility on Friday would have been expected.

USD/JPY Video 10.05.21

To the upside, it appears that the ¥110 level is a bit of a resistance barrier, but at this point I think that we will continue to try to get there. If we break down below the ¥107.50 level, then it is possible that we could go to the ¥107 level. The 38.2% Fibonacci retracement level has showed itself to be supportive, especially as the 200 week EMA has come into play as well. At this point, this is a market that is trying to determine whether or not it can continue the massive and impulsive move previously, and therefore it makes sense that we have to chop around this area to figure out where we go next. Ultimately, this is a market that I think will be positive in general but noisy to say the least.

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