USD/JPY Weekly Price Forecast – US dollar bounces for the week

Updated : Nov 2, 2018, 20:21 UTC1min read
The US dollar bounced during the week, breaking the top of a couple of hammers on the weekly chart against the Japanese yen, and a purely technically driven move. With the jobs number coming out on Friday hotter than anticipated, we have seen a little bit of strength as well
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The US dollar has rallied against the Japanese yen during the week, breaking above the ¥113 level at one point. We are starting to get back a little bit of the gains as we approach the weekend, but that’s not overly surprising. I believe that the ¥114.50 level above begins significant resistance that extends to the ¥150 level, so it is going to take quite a bit of momentum to finally break above that level, which I do think we will eventually try. I also believe that there will be multiple attempts at breaking out, which of course will take quite a bit of effort.

USD/JPY Video 05.11.18

If we did break down below the ¥112 level, the market will probably unwind towards the ¥111 level. After that, I think the ¥110 level is even more supportive, so I would be even more interested in buying that level. Ultimately, this is a market that tends to move on interest rate differentials as well as risk appetite, so I think given enough time the underlying strength of the US dollar an interest rate differential between the United states and Japan will continue to propel this market to the upside.

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Ultimately, this is a market that will continue to grind to the upside, and you should keep in mind that the word grind is crucial. Although I believe in the bullish pressure, I’m not looking for major gains in short bursts.

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