USD/JPY Weekly Price Forecast – US dollar runs into brick wallThe 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.
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.
Please let us know what you think in the comments below