USD/JPY Weekly Price Forecast – US dollar gives back a bit for the week

The US dollar has initially tried to rally during the week but then rolled over as the complete “risk off” attitude comes back to the market. At this point, the stock markets are going all over the place, gaining, and losing hundreds of points in the Dow Jones Industrial Average. That of course has an effect on the US dollar, or vice versa. At this point, it’s obvious that the Federal Reserve is going to continue raising rates, and if we can get the markets to calm down it would make perfect sense for this pair to continue to grind higher. That being said, we also have a nice hammer from the previous week so in theory the technicals look as if we should get a rally, but if we were to break down below the hammer, we could go down to the ¥110.50 level rather quickly, and then perhaps even the ¥110 level.

I think this market is probably going to continue to struggle, but eventually we should find value hunters coming back into the market to pick up the dollar “on the cheap”, as it is the favorite currency around the world right now, with perhaps the exception of the Japanese yen. We are still very much in and uptrend over the last several months, despite the fact that we have really struggled. The resiliency of this pair has been rather remarkable though.

USD/JPY Video 29.10.18