USD/JPY Weekly Price Forecast – US dollar slams into resistance
The US dollar rallied rather significantly during the week, reaching towards the ¥108 level. At this point, the market is starting to reach into a lot of resistance, and of course a lot of choppy action.
The US dollar has rallied significantly during the week to reach towards the ¥108 level. That’s an area that of course will cause a lot of noise and a lot of volatility. This level has been supported a couple of times, and perhaps even the resistance. All things being equal, it looks as if there is a lot of resistance between here and the ¥109 level, and I think that given enough time we will probably see sellers jump in there. All things being equal it’s likely that the market will react to the S&P 500 and risk appetite around the world.
USD/JPY Video 16.09.19
Looking at the chart, it’s very likely that we are going to see a lot of noise and that makes quite a bit of sense considering that the stock markets are continuing to be stretched to the upside but can’t quite break out. I believe that this pair is also going to be very sensitive to the risk appetite when it comes to the US/China trade situation as well. All things been equal this is going to be very difficult market to trade from a longer-term standpoint so you may have to go towards the daily charts, or perhaps even shorter-term charts.
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The most useful function of this chart is going to be using it as a secondary indicator for other pairs such as NZD/JPY, GBP/JPY, AUD/JPY, and so on. In other words, use it as a strength indicator for the Japanese yen and perhaps find markets that will move a little bit quicker.
Please let us know what you think in the comments below
