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

The US dollar has fallen during the week, but the Friday session has seen the market turn around quite a bit. Ultimately, it looks like we are going to continue to grind in this area and it is worth noting that we are trying to at least show some semblance of support in this area. Nonetheless, it still looks likely we are going to continue to see negativity in general, as long as the Federal Reserve is out there flooding the markets with greenbacks. To the upside, I see the ¥107.50 level as a massive resistance barrier, so if we were to break above there then we could go looking towards the ¥110 level.

USD/JPY Video 24.08.20

To the downside, if we can break down below the ¥105 level, it is likely that we could reach towards the ¥104 level, and then possibly even the ¥102 level. At this point in time, I think it is easier to trade this market back and forth on short-term charts, perhaps with more of a negative slant to the trading. The biggest problem with this pair is that both of these currencies are considered to be “safety currencies”, meaning that they can move in a stronger way when people are nervous.

That causes across current in this pair right now, but at the same time with the Federal Reserve pumping the markets full of greenbacks, I still favor the Japanese yen. As far as a bigger move is concerned, we may be several weeks away from anything happening that would be worth hanging onto. Unfortunately for longer-term traders, this may not be a great pair to trade right now.

For a look at all of today’s economic events, check out our economic calendar.