USD/JPY Weekly Price Forecast – US dollar slams into resistance

The US dollar initially pulled back a bit during the week, breaking below the 50 week EMA. However, we turned around to show signs of life there and shot straight towards the resistance barrier that I have shown on the chart. At this point, the area between the ¥111.50 level and the ¥112 level is still massive resistance and it’s going to take a bit of pushing to get through. If we get a daily close above that level, then I think that the market could go looking towards the ¥113.50 level. That is an area that has a significant bout of resistance built in.

USD/JPY Video 08.04.19

On the other hand, if we failed to break out above there, it’s likely that the market could pull back towards the 50 week EMA again, or even the ¥110 level which is massive support. Looking at this chart, it’s likely that we see more consolidation than anything else. Overall, it’s likely that we will see volatility more than anything else. Keep in mind that the pair is highly sensitive to risk appetite, and perhaps even the S&P 500 overall. As we are pressing against major resistance in that market, it makes sense that we would struggle over here as well. If we get a break above the 2900 level in the S&P 500, then this market would probably follow right along to the upside. If the S&P 500 breaks down and cannot break that level, then it’s very likely we get a pullback. It would also makes sense that we consolidate in both markets, which has more of a negative connotation, but maybe only short term.

Please let us know what you think in the comments below