USD/JPY Price forecast for the week of November 27, 2017, Technical Analysis

The United States dollar went back and forth during the week, initially tried to rally against the yen, but then broke down below the 112 level. By doing so, it looks as if we are going to continue to see bearish pressure, and the US dollar in general looks as if it is struggling a bit. I think if we break down below the bottom of the range during the week, the market should then go down to the 108 handle, which has been massive support during the year. Alternately, if we were to break above the top of the candle for the week, the market should then go to the 114.50 level above which is the beginning of significant resistance. That resistance extends to the 115 handle, and I think if we can break above there, then the market is likely to reach towards the 118.50 level again.

Keep in mind that the pair tends to be very volatile in general, and of course is highly influenced by the interest rate differential between the United States and Japan. As the 10-year note continues to see higher interest rates, the USD/JPY pair should rally. However, it is also a market that is highly sensitive to risk appetite, so if risk appetite wanes a bit, that could send this market lower. We also have problems with the United States Congress not been able to pass significant tax reform, and if that’s the case at will continue to weigh upon the US dollar as well. This is where that trouble shows up the quickest, as the Japanese yen is considered to be a safety currency more than anything else. Be careful of your position size, because this market does tend to move rather rapidly and suddenly.

USD/JPY Video 27.11.17