USD/JPY Weekly Price Forecast – US dollar flat against Japanese yen for the week

The US dollar went back and forth during the week against the Japanese yen as we continue to hover around the ¥111 level. This is a market that very difficult to trade right now from a longer-term perspective, but one could argue that we are trying to make a bit of a bullish flag within the confines of a symmetrical triangle. This makes sense, because the US dollar has been strong overall, but the Japanese yen is typically bought when people are concerned about global trade. With the spat between the Chinese and the Americans, there’s a bit of an anchor around the neck of this pair. If we can break above the downtrend line on the chart, I suspect that we will probably make a move towards the ¥114.50 next. If we pull back from here, I think that the ¥110.50 level will continue to offer support, just as the ¥110 level will.

Overall, I am expecting this market to go higher over the longer-term, but in the meantime it looks like we are so confused about the potential trade war ramifications that the pair can’t go anywhere right now. This remains a range bound currency pair, traded best on short-term charts such as the one hour time frame. Longer-term traders simply must wait for the break out or the break down to get involved. At this point, there are easier ways to play the US dollar than to try to match it with the Japanese yen.

USD/JPY Video 10.09.18