USD/JPY Weekly Price Forecast – US dollar chops around against Japanese yen for the week

Christopher Lewis
The US dollar went back and forth against the Japanese yen during the trading week, dancing around the ¥108 level. By forming a neutral candle stick, this shows that the market really doesn’t know where we are going next.

The US dollar has gone back and forth during the week against the Japanese yen just below the ¥108 level, as the market continues to show a lot of indecision. The 61.8% Fibonacci retracement level is in this general vicinity, and therefore I think there are a lot of reasons why this market could continue to find a lot of buying and selling at the same time. The area that we are in is very choppy and therefore I think we are trying to make a lot of decisions here. If we can break above the ¥108.50 level, then I think the market may make an attempt to go higher, perhaps the ¥109.70 level. To the downside, if we break down below the candle stick from a couple of weeks ago, then the market goes down to the ¥105 level underneath, wiping out the entirety of the bounce.

USD/JPY Video 22.07.19

At this point, we are getting ready to make a decision for a longer-term move, so at this point you need to watch the consolidation area that we have been in over the last couple of months to wait for some type of breakout. Overall, the Japanese yen is of course a “safety currency”, so that has a certain amount of effect on the market. Beyond that, the US dollar is getting hit because of the Federal Reserve looking to cut rates, so that hurts the greenback. However, at the same time we see stock markets rally due to that, and this might be the one place where the US dollar could find buyers. Either way, just pay attention to the range and trade it accordingly on the breakout.

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This article was originally posted on FX Empire

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