USD/JPY Weekly Price Forecast – US Dollar Pulls Back Toward SupportThe US dollar has pulled back significantly during the course of the week to test the ¥109 level for support.
The US dollar has fallen during the course of the week, to break below the ¥109 level. That being said, the market certainly looks as if it is trying to find a bit of support in this area, and if you look at it on the daily timeframe, you can clearly see that there are a lot of buyers and noise in this general vicinity, so it will be interesting to see whether or not this market can keep itself supported in this area. If we get a daily close above the ¥109 level, then I would be a buyer to go looking at the ¥110 level as a potential target, perhaps even the ¥111 level.
USD/JPY Video 19.04.21
If we break down below the ¥108 level, then it is possible that we go much lower, perhaps reaching towards the ¥106 level. That being said, I think that would be an extreme move, and if we were to look at the pair falling like that, it would probably be a major “risk off” type of situation where the yen would not only pick up strength against the US dollar, but probably against most other currencies.
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At this point, the market looks as if it is trying to form some type of either top or supportive move, so at this point it is going to be best to allow the market to make up its mind before you get involved. All things being equal, if we were to break above the recent highs, it is likely that we go looking towards the ¥112 level, maybe even the ¥115 level. This is a huge move that we have recently seen, so it does make a certain amount of sense that we get that pullback.
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