USD/JPY Weekly Price Forecast – US Dollar Rallies Into Resistance

The US dollar has rallied significantly during the course of the week, reaching towards the ¥106.50 level. That being said, this is an area that features a lot of resistance, so do not be surprised at all to see this market rollover from here, and then go towards the bottom again. After all, a lot of this will have been a reaction to the jobs number, which of course always throws a bit of volatility in this market for a short term, but all things being equal, it is likely that we will continue the overall consolidation.

USD/JPY Video 07.09.20

Even if we do break out to the upside, it is difficult to imagine a scenario where we break above the ¥107.50 level anytime soon, because it has been such structural resistance. The 50 week EMA is starting to crash into that level as well, so that of course will attract a lot of attention. Fading short-term rallies has been the best way to trade this market as of late, so a longer-term trade is probably something that you will have to wait some time to get being possible.

I think at this point in time this is still a short-term trading environment, so you cannot try to buy-and-hold or sell and hold until we get some type of impulsive and clear candlestick. Until then, things are very difficult, and it means that we will continue to see a lot of short-term and small position possibilities, but for an investment, things still need to show signs of clarity, something that we are far away from.

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