USD/JPY Weekly Price Forecast – US Dollar Reverses Initial Losses for The Week
The US dollar initially fell during the course of the week to reach down towards the ¥108.50 level before turning around quite drastically to break above the ¥110 level. This is a very bullish sign and does suggest in fact that the pair is going to try to test the highs again. Keep in mind that there is a massive amount of resistance just above there, so while this could break out to the upside, the reality is that I tend use this pair as an indicator as it is much choppier than some of the other yen related pairs. I anticipate that this market will probably continue to bounce around between the ¥108.50 level, and the ¥111.50 level.
USD/JPY Video 09.08.21
Keep in mind that this pair is highly sensitive to risk appetite, as the market continues to see a lot of back and forth when it comes to risk appetite, it will continue to cause choppy behavior. I do like the idea of buying dips until we break down below the ¥180.50 level, but as far as a longer-term “buy-and-hold” type of position is concerned, I think it is going to be a bit difficult for this pair to provide that.
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That is why if it continues to rise over the longer term, I will probably be buying other yen related pairs much more heavily, such as the GBP/JPY pair, NZD/JPY pair, and so on. Keep in mind that interest rates also have a lot to do with what happens here, so if interest rates rise in America that might be reason enough to have this pair go higher.
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