USD/JPY Weekly Price Forecast – US dollar runs into brick wall

The US dollar rallied during the week but as you can see has pulled back from the crucial ¥112 level yet again. This is an area that has been a bit of a brick wall as of late, and although we are going to finish the week with a bullish candle, the reality is that the resistance is still very stringent.
Christopher Lewis
USD/JPY weekly chart, March 18, 2019

The US dollar has rallied during the week but gave back the gains near the ¥112 level yet again. This is an area that has been a major problem, so I think if we can break above it we will have a bit of a beach ball under water effect, meaning that once it gets to the surface it will shoot straight up. However, I also believe that the market is likely to be very choppy and is one that you should probably wait until we get a daily close telling us which direction to go. In other words, if we get a daily close above that ¥112 level, then it’s time to start buying.

USD/JPY Video 18.03.19

On the downside, if we get a daily close below the ¥111 level, then it’s time to start selling as we should then go looking towards the ¥110 level. I think that this pair can be thought of as a proxy for the S&P 500, as the two are acting very similar right now. Ultimately, this is a market that will continue to see a lot of volatility, but eventually we will need to see some type of impulsive candle. Currently, I’m sitting on the sidelines and waiting for clarity that I can take advantage of. Quite frankly, there are better currency pairs out there to trade right now, but eventually we will get our signal.

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