USD/JPY Weekly Price Forecast – US dollar volatile and positive against Japanese yenThe US dollar has formed a positive candle for the week, but as you can see we have been all over the place. At this point in time I believe that the ¥107 level has proven itself to be massive resistance.
The US dollar has gone back and forth during the week, reaching as low as the ¥105 level underneath, and the ¥107 level above. At this point, the market continues to be very choppy and it quite frankly should be. After all, there’s a lot of risk out there that traders are trying to get away from, and as a result it’s likely that we will continue to see the Japanese yen favored by currency trader so I fully anticipate that we fade this rally. It’s not that the US dollar is going to struggle, it’s just going to struggle against the Japanese yen.
USD/JPY Video 19.08.19
If we did break above the ¥107 level, it would be a sign of positive momentum in risk appetite, and therefore it’s likely that we could see a turnaround in the stock market. In the short term, I think it’s very likely that the market probably reaches back down towards the ¥105 level as quite frankly there’s just so much out there that could go wrong. At this point in time we are essentially in a bit of a range, so I think likely trading is going to be go back and forth and choppy to say the least. I still favor the downside though, because quite frankly there are far too many negative things out there just waiting to happen. The Japanese yen has been rallying against most other currencies so if you are looking for a little bit more Alpha and your trade, perhaps she will short the AUD/JPY pair, or maybe even the NZD/JPY pair.
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