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

The US dollar fell during the week, but then found a bit of support against the Japanese yen. We continue to see significant levels just below though, and I think that could be influential as to what happens over the next couple of weeks.
USD/JPY weekly chart, December 10, 2018

The US dollar has initially fell against the Japanese yen, but then found a bit of support at the previous uptrend line to turn things around and show a continuation of what we have seen. The overall attitude of the market has been bullish, but choppy. I think that the ¥114.50 level above continues to be massive resistance, so I think it’s going to take something special to break above it. If we can clear the ¥115 level, then I think the market could go much higher. I believe that we will probably see buyers step into this market to try to lift it and continue the overall attitude that we have seen for some time.

USD/JPY Video 10.12.18

However, if we were to break down below the ¥111.50 level, then I think the market could go much lower. This would be a move to the ¥110 level just waiting to happen, perhaps even lower than that. When you look at the longer-term charts, you can clearly see just how difficult the ¥114.50 level has been for some time. There are a lot of concerns out there about global growth, and the Federal Reserve suddenly seems a bit softer, so a break down is something that actually could happen. The next couple of weeks will have little in the way of volume, especially as we get closer to the holidays. Because of this, we could get Sunday and erratic moves, but right now until we break down below the uptrend line and the support level, you have to assume the continuation of grinding higher continues.

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