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

The US dollar has gone back and forth during the week, at least against the Japanese yen. As we start to approach the G 20, a lot of traders will be looking at the statement coming out of the Americans and the Chinese. Quite frankly, that’s probably the only game in town right now, but the one thing that you should keep in mind is that this market has a high sensitivity to risk appetite in general. If risk appetite continues to be relatively decent, then we could get a turnaround and start breaking to the upside. For the longer-term trader, I would wait until we break above the candle stick from the previous week before getting long. However, the real trade is probably going to be based upon whatever statement we get coming out of both camps. If it is somewhat constructive, we could see a rally here as it will drive money away from the Japanese yen.

USD/JPY Video 01.07.19

That being said, there’s also the real possibility of disappointment, and if we do in fact get that disappointment it’s likely that the market will probably break down significantly. A gap on the daily chart to kick off the day on Monday more than likely will signal which direction we go. A gap to the downside almost certainly will have this market looking towards the ¥105 level underneath. All things being equal, it makes sense that we continue to struggle for direction between now and then.

Please let us know what you think in the comments below