USD/JPY Weekly Price Forecast – US dollar mixed during the week against yen

The US dollar has been back and forth against the Japanese yen during the week, as we have had a lot of moving pieces to digest. Ultimately, we are settling near the ¥109 level, which has been important more than once.
Christopher Lewis
USD/JPY weekly chart, February 04, 2019

The US dollar has gone back and forth during the week, testing the ¥110 level above as resistance, and the ¥108 level underneath. This is a market that continues to see a lot of volatility but that makes a lot of sense as the Federal Reserve has changed its stance about rate policy and overall balance sheet policy quite a bit. Beyond that, the Japanese yen of course is a safety currency that people will run to in times of trouble, so it’s likely that we get a lot of back and forth type of pressure because of stock markets. On one hand, the US dollar has been losing strength, but on the other, she got markets have been rallying which is typically good for this market.

USD/JPY Video 04.02.19

On Friday, we received word that the January jobs report was an addition of over 300,000 people to the payroll, which of course is very bullish for risk appetite. Because of this, I think that the market will continue to go back and forth, in a somewhat undecided pattern. However, if we break down below the ¥108 level, then the market is free to go down to the ¥107 level, and then eventually the ¥105 level. Alternately, if we were to turn on a break above the 61.8% Fibonacci retracement level, which is substantively the ¥110 level, then the market could make a move towards the ¥111.50 level after that. One thing I think is for sure, we are going to see a lot of volatility.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US