USD/JPY Weekly Price Forecast – US dollar falls against Japanese yen for the week
The US dollar fell significantly against the Japanese yen during the week, as we continue to struggle with the ¥114.50 level above. That’s an area that shows resistance all the way to the 115 young level, so it makes sense that we would struggle to break above there.
The US dollar pulled back significantly during the week, as the ¥114.50 level continues to offer major resistance. I think at this point, the uptrend line underneath should continue to offer buying pressure, and the ¥112 level course has been important more than once. I think we are either going to find buyers underneath, or we are going to continue to go sideways. I do recognize that the ¥115 level above is major, and if we were to break above that it would be a huge deal. I think at this point it’s a bit difficult to do so though, as the Japanese yen is considered to be a safety currency. Over the next couple of weeks, we will make many important decisions when it comes to the future of this market.
USD/JPY Video 19.11.18
If we do break down below the ¥111.50 level, then I think the market could break down rather significantly. At that point, I would be looking at ¥110 as my next target. It’s a bit early or premature to call this as a potential “double top”, but it certainly has the potential of being so. If we break down below the support levels underneath, that would of course confirm it, and I think it would show that we are going to accelerate to the downside and a lot of risk appetite, not just this market. This market will continue to be very interesting to watch, but I think at this point it’s likely to be volatile to say the least.
