USD/JPY Weekly Price Forecast – US Dollar Pulls Back Against Yen Again

The US dollar has fallen during the week to reach down towards the ¥107 level. That is an area that I believe will cause a certain amount of support, as we have seen a bit of stabilization over the last three weeks. The bounce at the end of the week was somewhat helpful to keep this market contained, and it is possible that’s what we are going to see, a simple containing of the currency pair. The 50 week EMA above is offering resistance, just as the 200 week EMA is. They are both flat though, so it shows that the market is probably trying to find some type of range that it can work with.

USD/JPY Video 20.04.20

If the market was to break down below the bottom of the candlestick for the week, then I think it opens up a move down to the ¥105 level again, which is an area where we have seen quite a bit of buying in the past. To the upside, if we were to break above the ¥109 level, then it could open up a move to the ¥111 level. What’s interesting is that there is a bit of a trend line in that general vicinity that point is decidedly negative. At this point, I think that things still favor a break to the downside longer-term, but we clearly aren’t there yet. Adding more noise to the mixtures the fact that this pair does tend to follow the S&P 500 or so.