USD/JPY Weekly Price Forecast – US Dollar Drifts Slightly Lower Against Yen

The US dollar has drifted a bit lower against the Japanese yen during the trading week, reaching towards the ¥106.50 level. The ¥106 level underneath continues to offer support as well, but quite frankly when I look at the weekly chart, I see that we are simply bouncing around in a larger triangle. I think eventually we could go looking towards the ¥105 level but breaking below there would be the real signal for a bigger move.

To the upside, the ¥107.50 level is an area that has been a bit of a magnet for price, so therefore this continues to be very noisy. If we can break above the ¥108 level, then we could go looking towards the ¥110 level. Quite frankly, this is a market that I think will be massive in its implications, but we are quite ready to make that move yet.

USD/JPY Video 22.06.20

All things being equal, it is likely that we will continue to see a lot of back and forth, grinding accounts down to zero. However, once we do make a move, it is going to be a bigger one so I will be watching this weekly chart. If you are a short-term trader, this might be the market for you but for longer-term traders it is going to continue to be difficult. This is a major risk appetite type of marketplace, so pay attention, if it starts to break down that is probably a sign that we are going to see a lot of major “risk off” type of trading around the world. Obviously, the exact opposite is true if we break out to the upside.

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