USD/JPY Weekly Price Forecast – US Dollar Neutral Against Japanese Yen for the Week
As you would expect during the Non-Farm Payroll week, the USD/JPY pair has been relatively sideways. At this point in time I think it is only a matter of waiting out the market before you get another selling opportunity. Yes, we formed a massive hammer from the previous week but that was almost all due to the Friday session closing out the end of the month. I think to the upside we could go to the ¥107.50 level, but at that point I am more than willing to start shorting this pair. After all, the Federal Reserve is doing everything it can to kill the US dollar, and they will succeed eventually.
USD/JPY Video 10.08.20
The Japanese yen is one of the least favorite currencies to buy against the US dollar though, because the Bank of Japan is so perpetually dovish. Ultimately, this is a market that continues to see a lot of noise around it, so I do believe that it is only a matter of time before we get some clarity, but we may have to wait out the noisy behavior. If we can break down below the candlestick from the previous week, we could very well find the USD/JPY pair approaching the ¥102 level, which is my longer-term target at the moment. You will notice that I have drawn a massive triangle in which we have had a couple of piercings of the bottom. That typically means that eventually we get some follow-through. With Jerome Powell running the printing press the way he is, it is a very real possibility.
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This article was originally posted on FX Empire
