USD/JPY Weekly Price Forecast – US Dollar Continues to Struggle Against The Yen
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US Dollar vs Japanese Yen Weekly Technical Analysis
The U.S. Dollar initially tried to rally a bit during the course of the week, but then turned around to fall pretty significantly. The 142 yen level is an area that I am paying close attention to, not only due to the fact that it’s an everyday kind of basic large round figure, but it’s also an area where we’ve seen a lot of action previously. Beyond that, we also have the uptrend line coming into the picture to show signs of support.
So, the question now is whether or not we can turn things around. If we can break above the 145 yen level, then we could go higher, perhaps to the 147.50 level and then the 150 level. On the other hand, if this is a market that breaks down below the 142 yen level, then it’s very likely we could drop all the way down to 137.50 yen as that would be the next major support level.
All things being equal, this is all about risk appetite. So, we’ll have to wait and see. But the carry trade certainly has unwound quite drastically. So, whether or not it continues, I think will be a major driver of what happens in the overall global economic scenario with the Japanese yen, of course, being a major safety currency, that would probably suggest that we are going to see a lot of selling pressure in multiple markets, and not just this one.
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This article was originally posted on FX Empire