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.

Please let us know what you think in the comments below

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
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.
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.