USD/JPY Weekly Price Forecast – US Dollar Recovers Nicely Through the Week
The US dollar has initially fallen during the course of the week to reach down towards the ¥109 level before turning around and showing signs of strength again. Ultimately, this is a “risk on” type of move, and it suggests that we could resource the highs again. The market will see a lot of resistance above between the ¥111 and the ¥112 levels. The ¥112 level has been difficult to break above for quite some time, and I do not think that changes quite easily.
USD/JPY Video 26.07.21
On the other hand, I think the most likely turnaround is going to be a lot of choppy behavior back and forth as the ¥110 level is essentially a magnet for price. The pair breaking above the ¥112 level would be a major turn of events, and have this market shooting much higher. It certainly looks as if it is trying to build up the inertia, but it is a barrier that has been difficult to break above for quite some time.
On the other hand, if we were to turn around a break down below the bottom of this candlestick for the week, then we could go looking towards the ¥108 level, possibly even the ¥107.50 level. That could open up a major “risk off” type of environment, which would be seeing in multiple markets overall, not just this one. At this point, it looks like we are going to continue to see noisy behavior more than anything else a longer-term traders may be somewhat dissuaded from being here.
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