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

The US dollar has rallied initially during the course of the week but gave back the gains to show a less than impressive candlestick. Keep in mind that this pair has been hovering around the ¥110 level for a while now, and simply seems as if it has nowhere to go. The 50 week EMA is trying to cross above the 200 week EMA, but the so-called “golden cross” is not as impressive on the weekly charts as far as what people pay attention to.

USD/JPY Video 06.09.21

When you look at this chart, you can see that we have nowhere to be at the moment, and I do not know if that changes anytime soon. We do see an influx of volume here and the next couple of weeks, as holiday season will finally be over. If we can break down below the ¥109 level, perhaps we could drop towards ¥107.50 next. On the other hand, breaking above the ¥110.75 level opens up a move towards the ¥112 level, an area that has been extraordinarily difficult to deal with for quite some time.

You should keep in mind that this pair is somewhat sensitive to risk appetite as the Japanese yen is considered to be the “ultimate risk off currency”, and therefore if we see a sudden selloff in the markets, it could send this pair much lower. Nonetheless, I think that longer-term traders are probably going to have to wait for an impulsive candlestick to put any real money to work. It just does not look as if this is setting up for a bigger move quite yet.

For a look at all of today’s economic events, check out our economic calendar.