USD/JPY Weekly Price Forecast – US Dollar Gives Up Gains for the Week

The US dollar initially rallied against the Japanese yen during the week, but then gave back quite a bit of the gains in order to form a bit of an inverted hammer. At this point, the ¥107 level underneath is a massive support level, so if we were to break down below their it is likely that we are going to drop to the ¥105 level. I think given enough time, this is a market that should continue to drift lower, and eventually we will probably see the market break down below the ¥107 level. When it does, the most obvious support level underneath will be the ¥105 level, but it may take some time to get there because both of these are considered to be safety currencies.

USD/JPY Video 27.04.20

In a world where there is a massive amount of negativity out there, it does make sense that eventually the Japanese yen will be running to. This pair does tend to move with risk appetite in general, but it should be noted that the pair would continue to be choppy, but I become much more aggressive to the downside and much more assertive and aggressive on that break down below the ¥107 level. If we rally from here, I believe that the ceiling is still at the ¥109 level, not only due to the recent action but the fact that the EMA, both 50 and 200 versions are sitting in that general vicinity. All things being equal, I think that the Japanese yen will attract more attention.