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

The US dollar spent most of the week trying to rally, but then it came back to form a bit of a shooting star. This suggests that we are going to continue to go back and forth in this general vicinity, as the hammer like candlestick from the previous week shows that there is buying pressure. In other words, we are essentially in the middle of a bigger range which I have marked out between the ¥105 level on the bottom and the ¥112 level on the top. Because we are in the middle this area, it’s difficult to get overly bullish or bearish at this point, therefore I think it’s simply a matter of waiting for the market to get to one of these outer ranges in order to buy or sell.

USD/JPY Video 13.04.20

I don’t necessarily think that this market is ready to go in one direction or the other, so I have been using the Japanese yen as a bit of a strength indicator for the Japanese yen itself. That being said, the candlestick is rather negative for the week, so we could drift down towards the bottom of the range. However, if we break above the top of the candlestick for the week, that would be very bullish and could send this market looking towards the ¥112 level rather rapidly. All things being equal though, I will more than likely be on the sidelines when it comes to this pair from this point, as there is no real clarity in one direction or another.