USD/JPY Weekly Price Forecast – US Dollar Sideways for the Week

Looking at the US dollar against the Japanese yen, you can clearly see that we are sideways and have nowhere to be. Ultimately, I think that the market is going to continue to look at the ¥105 level as a major support level, and an area that if being broken could open up a move back down to the ¥104 level. On the other hand, if we break above the top of the candlestick for the week, then it is likely that we go to the ¥106 level.

USD/JPY Video 05.10.20

The pair is highly sensitive to risk appetite, so do not be surprised at all to see it go back and forth based upon the massive amounts of noise out there that can continue to cause issues. Coronavirus, jobs number missed in the United States, EU coronavirus figures increasing, Donald Trump having coronavirus, and of course Brexit are all things that can from monkey wrench into the entire situation. Looking at this chart, I believe that we are still very much in a downtrend, but I frankly the market is likely going to continue to see more of a “fade the rallies” type of scenario.

Looking at this chart, if we were to break above the ¥107.50 level I might be convinced of a bigger move higher, but quite frankly with bond yields in Japan paying more than the United States these days, it makes quite a bit of sense that we continue to see negativity, especially with all of the headline noise.

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