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

The US dollar has gone back and forth against the Japanese yen during the week, as we have had a move directly into major resistance, in the form of the ¥110 level, as well as the 61.8% Fibonacci retracement level, both of which will cause a lot of interest in this market. Quite frankly, we had done so much in the way of technical damage lately that it makes sense that we would continue to go lower over the longer-term. After all, there are a lot of people that continue to look at the markets with a lot of fear, and of course the Federal Reserve looks to be a bit dovish lately, and of course there are a lot of economic concerns out there. If those economic concerns come to fruition, quite often you will see people buying the Japanese yen.

USD/JPY Video 28.01.19

I do believe that the ¥108 level underneath will be massive support, so it’s likely that we will see a bounce from that level if we get down there. That being the case, I would be quick to take profits in that area, but I do recognize that longer-term we will probably continue to go down to the ¥105 level. The alternate scenario would be is if we break above the 61.8% Fibonacci retracement level, which typically will allow the market to go to the next major resistance barrier, such as the ¥111.50 level. Overall though, I do think that we are starting to rollover for a return to lower pricing.