USD/JPY Weekly Price Forecast – US dollar struggles against Japanese yen

The US dollar has initially try to rally during the week against the Japanese yen but failed as it turned around and form a shooting star. This of course is a negative turn of events, but it looks as if the ¥111 level is that area to pay attention to the most on this chart. If we can break above that, then the market should be able to go to the ¥112.50 level rather quickly, perhaps even the ¥115 level after that. In the meantime, I think the biggest thing keeping this market down is the trade tariff situation between the Chinese and the Americans, and that doesn’t look like it’s going to end anytime soon. However, if it does this market will shoot through the ceiling rather rapidly.

I believe that the ¥108 level underneath is a bit of a “floor” in the market keeping it supported, and it would take a major escalation to break it down below there. I also could make an argument for an ascending triangle on the daily chart, so that’s a good sign as well but obviously we need to have momentum pick up to the upside before we can take advantage of that. I believe ultimately, this is a short-term back and forth type of situation, so longer-term traders will probably have to sit this one out, at least for the time being as there are so many moving pieces and of course headlines that could change things.

USD/JPY Video 09.07.18