USD/JPY Weekly Price Forecast – US dollar show strength for the week

The US dollar has initially gapped higher to kick off the week, but then pulled back a bit to look for buyers underneath. Ultimately, we have turned around to reach towards the 100 a .60 level, which is a very bullish sign. At this point, if we can break above the recent highs just above here, the market should then go to the ¥109 level, followed by the ¥109.70 level. At this point, the market looks as if it is trying to form some type a bottom, perhaps turning things around.

USD/JPY Video 08.07.19

The dollar tends to rally against the Japanese yen when we see more of a “risk on” attitude, and therefore I think that it’s only a matter of time before we do rally as the stock markets have been so bullish as of late. True, Friday was a relatively negative initially due to the fact that the jobs number was a bit better than anticipated, and people are starting to worry about whether or not there will be interest rate cuts. They will get them eventually, and therefore stock market should rally. Once that happens, we should see the dollar rallied against the Japanese yen as the yen is the “ultimate safety currency.” I do believe that we go higher but the question is whether or not we need to pull back initially? I don’t know that yet, but I look at pullbacks as buying opportunities that you can take advantage of on short-term charts.

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