USD/JPY Weekly Price Forecast – US dollar finding support

The US dollar has broken down a bit during the trading week, testing the ¥110 level. This is a level that has been important more than once, so it makes quite a bit of sense that we could continue to see this be the bottom of the range. The ¥111.50 level above is the beginning of significant resistance all the way to the ¥112 level. At this point, I think the market is very likely to see a lot of short-term choppiness, so it’s very difficult to recommend any type of longer-term trade. If we can break above the ¥112 level, then I think we could go to the ¥113.50 level. To the downside, break down below the ¥110 level opens the door to ¥108.

USD/JPY Video 01.04.19

If we were to break down below the ¥108 level, that will unwind this pair all the way to the ¥105 level, but at this point it’s very likely that it would take some type of major financial event to break things down like that. The pair is likely to remain somewhat range bound and stuffed though, because we are so confused globally. This is a pair that will react to risk appetite, and therefore it’s likely that the longer-term traders will have a lot of trouble with. Short-term traders will continue to love this market though, because the volatility will offer quite a bit of opportunities. In this case, longer-term traders are probably better off simply waiting for one of the large levels to be broken.

Please let us know what you think in the comments below