USD/JPY Weekly Price Forecast – US dollar falls again for the week

The US dollar fell again during the week, after initially trying to rally against the Japanese yen. The ¥111.50 level has offered resistance, and now the market has rolled over towards the vital ¥110 level.
Christopher Lewis
USD/JPY weekly chart, December 31, 2018

The US dollar has initially tried to rally during the week, testing the ¥111.50 level. We rolled over from there and reach towards the ¥110 level, an area that could cause a bit of psychological support. Beyond that, we have the 200 EMA on the weekly chart, so I think that if we can break down below there it’s likely that the market comes down to the ¥108 level which is my target now that we have broken through a major uptrend line. Signs of a rally are an opportunity to start selling on signs of exhaustion.

USD/JPY Video 31.12.18

Ultimately, I think that this will move right along with risk appetite, which seems to be in the basement right now. Pay attention to the S&P 500 and other indices around the world, because they will of course be highly influential on what happens in this market. The ¥108 level underneath is massive support, but if we break down below there, then I think we could go down to the ¥105 level. Ultimately, I believe that we will have a lot of volatility and concerns out there so that should continue to throw this market around. I look at rallies as an opportunity to take advantage of yen weakness, as I think it will be one of the stronger currencies this year as we have a lot of concerns out there, and I believe it’s only a matter of time before we see this market roll over upon rallies. However, if we break above the ¥112 level, then we may get a return to the highs again.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.