USD/JPY Weekly Price Forecast – US dollar rallies again

The US dollar rallied a bit during the week, reaching towards the 50 week EMA, as well as the 61.8% Fibonacci retracement level. I believe that there is a significant amount of resistance near the ¥111.50 level, an area that accelerated the downside on the daily chart. The candle stick of course for the week is rather good looking, so I think that we may have the ability to rally a bit further, but I would expect somewhere near the ¥112 level for a lot of the sellers return.

USD/JPY Video 18.02.19

The choppiness in this market is a function of a lot of global concerns and indecision. After all, this market is very sensitive to the global risk appetite situation, and of course as a measuring stick the stock market tends to move right along with this pair. I believe at this point it’s very likely that the market participants will continue to be cautious about going long of this pair, but there seems to be a significant base being built near the ¥110 level. In other words, this is probably not a long-term pair that you should be involved with.

Ultimately, I think that you can expect a lot of back and forth trading as this pair will be thrown around by a softer Federal Reserve, the Bank of Japan being as clear as mud, and that of course all of the geopolitical and global situations that have traders perplexed these days. This is a microcosm of the entire attitude of financial markets.

Please let us know what you think in the comments below