USD/JPY Weekly Price Forecast – US Dollar Falls for The Week

The US dollar initially tried to rally during the week but found the ¥107.50 level to be too much to overcome, before we pull back towards the ¥106 level. The ¥106 level has been a bit of a double bottom recently, and the fact that we are reaching towards their again suggests that we could very well break down below it and go much further. I believe that the ¥105 level should continue to be a target to the downside, followed by the ¥102 level.

USD/JPY Video 27.07.20

Looking at this chart, it seems as if the market is likely to continue to show sellers coming in and punishing rallies, as it is starting to get rather happy. The US dollar continues to suffer at the hands of the Federal Reserve and the quantitative easing situation. Ultimately, this is a market that I think has a lot of heavy selling above it, and it is only a matter of time before we break down. With this being the case, I do think that fading the rallies will continue to work, or eventually we will break down below the crucial ¥106 level, sending this pair much lower.

Ultimately, I think that selling again and again should continue to be the best way going forward. It certainly looks as if we are on the precipice of something bigger, so pay close attention to this market as we are certainly knocking on the door of something bigger. At this point, things look very bleak for this pair to say the least.

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