USD/JPY Weekly Price Forecast – US Dollar Relatively Quiet For The Week

The US dollar has gone back and forth during the trading week, showing signs of choppiness, as the previous week had formed a shooting star and therefore showed signs of negativity. At this point, the market doesn’t look as if it knows where to go and that makes quite a bit of sense considering that the Federal Reserve is giving an interest rate announcement and more importantly a statement on Wednesday which will have a massive influence on this market. With that in mind, if we can break above the 61.8% Fibonacci retracement level at roughly ¥109.50, then I become much more bullish and start buying.

USD/JPY Video 28.10.19

Looking at the chart, if we do break out from here it’s very likely that we could go looking towards the ¥107.50 level, and then possibly the ¥107 level. The market is trying to break out to the upside, but if it does not then we could continue to drop from here and perhaps start a bit of consolidation. All things being equal though I think is very likely that the market should get a significant move based upon the Federal Reserve. The statement will be crucial, so although it’s already baked into the price that the interest rate is coming. If that interest rate doesn’t calm, that could cause absolute chaos and the Federal Reserve governors certainly know this. At this point in time the next couple of weeks should be crucial as we have some serious decisions to be made in this market.

Please let us know what you think in the comments below