USD/JPY Weekly Price Forecast – US Dollar Continues to StruggleThe US dollar fell during the bulk of the week against the Japanese yen, testing the lows at ¥104. We had a spike low that reached all the way down to ¥102.
The US dollar has had a rough week against quite a few currencies, but the Japanese yen has been more of a consistent grind lower. This candlestick for the week could be a lot different if it were not for the Wednesday selloff. At this point, it appears that the pair is destined to test that spike low down at ¥102 again, if for no other reasons than the fact that people believe that we are either going to have a major “risk off event” relatively soon, or stimulus will devalue the US dollar so greatly that it will lose against everything else.
USD/JPY Video 26.10.20
Regardless of any fundamental analysis, this market is in a downtrend and that is probably the most important thing to pay attention to. The ¥102 level is the measurement that you get from the descending triangle on the chart as well, so quite frankly it all ties in together quite nicely. Sometimes, the market will actually tell you where it wants to end up. This may be one of those times.
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Having said that, the way the market is acting on Friday suggests that we may get a short-term bounce again that you can start fading into. While this has been a relatively stable downtrend, it has not necessarily been friendly to long-term traders because of the lack of big moves. It is because of this that most of the trading that I have done in this pair has been on the 15 minute chart as of late. All of the trading has been to the downside.
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