USD/JPY Weekly Price Forecast – US Dollar Stabilized Against Yen
The US dollar has gone back and forth during the course of the week, showing signs of negativity at one point, and then bullish pressure at another. Nonetheless, the market looks as if it is trying to think about the next move. To the downside, if we break down below the ¥105 level, that would obviously be a very negative sign. On the other hand, markets breaking above the ¥107 level opens up a move towards the ¥107.50 level above, which has been structurally resistance. I think that the market is probably still going to bounce around between the ¥107.50 level above and the ¥105 level below. At this point, we are essentially right in the middle, so there probably is not too much to do right now as the market does not offer a clear risk to reward ratio that we should be using.
USD/JPY Video 14.09.20
Having said that, both of these central banks are very soft with monetary policy so it is likely that we will continue to see a lot of indecision, so having said that you are probably better off trading this pair from a short-term perspective. Going back and forth on short-term charts has worked out quite well for the previous week, and if you expand the range just a bit, you could even say the same thing about the previous month. All things being equal, I remain negative, but we may get a short-term rally and start selling off yet again at the first signs of exhaustion.
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This article was originally posted on FX Empire
