USD/JPY Weekly Price Forecast – US Dollar Pulls Back Significantly Against The Yen for the Week

The US dollar has pulled back significantly during the week, breaking down through the ¥107.50 level. That is a fairly negative sign, but it is still within the range that we have been in for some time. Furthermore, the market is likely to continue seeing a lot of compression, so I would not be surprised at all to see this pair rise, especially if risk appetite comes back on in stock markets and the like. On the other hand, if we were to break down below the ¥105 level, that could open up the trapdoor to much lower pricing.

USD/JPY Video 15.06.20

When you look at the long term charts, you can see that we are forming a bit of a triangle and that suggests that we are going to have a big move in one direction or the other, but it seems to me that we are simply “killing time” in the meantime. I think that we go back and forth and therefore it is difficult to trade this market from a longer-term standpoint right now. However, if you are shorter-term trader, we have a nice clear range between ¥110 and ¥106 that works out quite nicely for those looking to trade daily candlesticks or perhaps even shorter time frames. When this changes, the market is likely to see an explosive move eventually, but we are not quite there yet, so I think we will have more of the same in the following week.

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