USD/JPY Weekly Price Forecast – US Dollar Pulls Back For The Week

The US dollar has rallied quite a bit during the week but gave back quite a bit of the gains later on, especially on Thursday. At this point, the market shows signs of rolling over a bit from here, but a meltdown isn’t necessarily what I’m looking at.
Christopher Lewis
USD/JPY weekly chart, November 04, 2019

The US dollar initially rally during the week but found enough resistance above to turn things around and show signs of weakness. By doing so, the market looks very likely to be very choppy but with a slightly negative slant over the next couple of weeks. The 107 level underneath should be rather supportive though, so at this point time I consider that the short-term “floor” in the market. To the upside, the 109.50 level should offer resistance, and if we can break above there than the market can go towards the 100% Fibonacci retracement level which is closer to the 112 level.

USD/JPY Video 04.11.19

I think the thing that you should pay attention to most is the fact that this pair does end up being choppy under most circumstances. Because of this you need to be able to place a position size small enough that you can swing back and forth as the market will almost inevitably make you do. However, if we can get that breakout to the upside it has much more momentum waiting for it than to the downside. I would become a bit more aggressive on the buy side then I would the sell side. All things being equal, this is a pair that will move based upon the US/China trade talks more than anything else in the short term, so who knows how that turns out? Be cautious, but we do have a couple of levels that pay attention to in this market.

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