USD/JPY Weekly Price Forecast – Us Dollar Finds Footing
The US dollar has plunged initially during the course of the trading week, to reach down towards the ¥112.50 level. That is an area that has been important a couple of times in the past, the fact that we are trying to form a massive hammer suggests that we are going to fight the selling pressure at the ¥115 level. That is an area that has been difficult for longer-term traders, as we have failed to break out above it with any type of conviction for ages. Needless to say, if we do break above the ¥115 level, the market is very likely to go on a longer-term “buy-and-hold” type of situation.
USD/JPY Video 06.12.21
The pair is highly sensitive to risk appetite, so keep that in the back of your mind as we continue to see a lot of back-and-forth trading. The risk appetite of traders around the world continues to see a lot of questions asked about the coronavirus situation, and of course the effects of some type of major lockdown. All things been equal, this is a market that I think will continue to see a lot of noise and, especially as the Japanese yen is considered to be a major safety currency. As long as that is the case, then you need to pay close attention to whether or not people are willing to get long of risk assets. As long as they are, then this is a market that should strengthen.
If we were to break above the ¥115 level, then it is likely that we could go looking towards the ¥117.50 level. It is not until we break down below the ¥110 level that I think this market is in serious trouble, and the fact that we recovered the way we have during the trading session on Friday suggests that we have plenty of people out there willing to pick this market up.
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