USD/JPY Weekly Price Forecast – US Dollar Finds Resistance

The US dollar has rallied a bit during the week to reach towards the ¥105 level. However, the market has pulled back significantly from there, which makes quite a bit of sense considering that we have been in a strong downtrend. Ultimately, I do think that the market will continue to pressure to the downside, but we are a bit extended. Because of this, we could get a short-term snapback, reaching higher only to start selling off again. Because of this, the market is likely to see a lot of volatility, but at the end of the day I think that any time we rally it is probably going to end up being a selling opportunity, perhaps extending all the way to the 200 day EMA (obviously pictured on the daily chart), which is closer to the ¥106.50 level. In other words, we are in a massive downtrend that has a lot of work to do to change things.

USD/JPY Video 30.11.20

At this point, I anticipate that we will eventually go looking towards the ¥103.25 level, the ¥103 level, and perhaps even the ¥102 level. Things are getting a bit stretched, so a relief rally would make a certain amount of sense, but I will be looking at that as an opportunity to pick up “cheap yen.” After all, there is no need to try to second-guess the trend right now, unless of course there is a sudden change in the fortunes of the US dollar overall. That being said, it would more than likely be a safety trade which should help the yen anyway. If the US dollar search the search here, then perhaps you may be better off trading it against the Euro or the British pound.

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