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