Yahoo Finance USD/JPY Weekly Price Forecast – US Dollar Continues to Test Support
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar initially tried to rally a bit during the course of the week, but then broke down rather significantly to reach the ¥152 level. That being said, this is a market that is now retesting the previous resistance barrier. And from a technical analysis standpoint, this is a perfect entry point.
We will have to see whether or not the market holds burnt. I think we may have a situation where those who look at the bigger picture realize that the Bank of Japan can only do so much, and it is possible that this is just simply the beginning of the next leg higher. On the contrary, if we were to break down below the ¥150 level, then that would obviously be a very negative turn of events.
But we are literally at the top of a previous ascending triangle that measures for a move of about 20 handles. I mean, we’re talking a long term structural move to somewhere around ¥175. In general, this is going to continue to be a market that pays you via swap. And quite frankly, the Bank of Japan would have to raise its rates and the Federal Reserve would have to collapse rates, not cut them, but collapse them to change that attitude and that fact.
So with that being said, this is still a market that I’m bullish on. I just want to let the market lead the way, and I will simply jump in at that point in time. However, I prefer to “scale into the position” whenever I can, as the volatility is going to continue to be a headache overall.
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This article was originally posted on FX Empire
