USD/JPY Weekly Price Forecast – US dollar gets hammered against yen

The US dollar got hammered against the Japanese yen during the week, slicing through a major uptrend line, a major support level, and then the 200 day exponential moving average on the daily chart. We are now testing the ¥111 level, and although I think we probably are looking for some type of short-term bounce to start selling again. Many of my contemporaries on Wall Street are calling for a stronger Japanese yen this coming year, and with all of the concerns that we see coming down the pike, it’s very likely that people will be looking for safety.

USD/JPY Video 24.12.18

I believe that the ¥112 level above is major resistance now, so I will be looking at shorter time frames to take advantage of what looks to me as a continuation of major resistance above at the ¥115 level. Ultimately, I think that this extraordinarily bearish candle shows that we are getting ready to roll over yet again but keep in mind that this pair does tend to be very choppy. It will move right along with global growth, which seems to be slowing down, and as you can see on the longer-term charts you can see that the region above has held as resistance several times, and the most recent low on the longer-term charts was even lower than the previous one. In other words, we could be looking at something rather ugly setting up for next year. Rallies at this point are not to be trusted.