USD/JPY Weekly Price Forecast – US Dollar Continues to Trade in the Same Tight Range

The US dollar has shown itself to be very resilient against the Japanese yen, although it has been essentially flat for several weeks. The ¥107.50 level continues to be a bit of a magnet for price, so it is not surprising to see that we ended up spending quite a bit of time there during the week. We are pulling back from there just a bit though, so I think what we are looking at is a scenario where we continue to grind sideways until some type of major decision is made with the global markets. Right now, everybody is trying to decide what is more important: The Federal Reserve loosening monetary policy, or the coronavirus affect?

USD/JPY Video 20.07.20

With this being the case, it is difficult to get overly excited about either one of these currencies because they can both be used as a safety currency’s depending on the situation. Having said that, we do have a significant uptrend line underneath, which could offer a bit of support. At this juncture, a break down below that level could open up a move to the ¥105 level followed by the ¥102 level. To the upside, I think there is a significant amount of resistance but if we were to clear the last couple of candlesticks to the upside, it is likely that we could go towards the ¥110 level, but that is about as far as we go from what I can see right now. With the way the Federal Reserve is behaving, it is not surprising that the dollars somewhat soft.

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