USD/JPY Weekly Price Forecast – US dollar fails to keep gains against yen for the week

The US dollar has initially tried to rally during the week but gave back most of the gains. By doing so, we did of forming a shooting star which of course is a negative sign but I also see a ton of support just below. I think this is indicative of what we are about to see: a lot of noise. The market should continue to be rocky at best, but I think ultimately we will then go to the ¥113 level if we can get some type of positive catalyst. If we don’t, then I think a move to the ¥109.50 level is possible.

This pair is probably moving on risk appetite more than anything else right now, because we already know that the Bank of Japan has a very dovish stance, while the federal reserve is most certainly going to be hiking interest rates. However, I think the ¥113 level is shaping up to be a massive barrier. I anticipate that we probably have a little bit more of a “sell the rallies” attitude over the next couple of weeks, but that will be more for short-term traders than anything else. This is a market that has been very noisy over the last couple of years, and I don’t see that changing anytime soon. With this, keep your position size small as I think we are in the middle of what will be the new trading range, bouncing between ¥109.50 and ¥113.

USD/JPY Video 06.08.18