Yahoo Finance USD/JPY Weekly Price Forecast – US dollar breaks support
The US dollar fell significantly during the week, breaking through the 61.8% Fibonacci retracement level. That being the case, the market is probably going to continue to go much lower, perhaps reaching to wipe out the overall move towards the ¥105 level below. That doesn’t mean it will happen overnight, but that certainly seems to be the path of the market. Beyond that, we have the Japanese yen strengthening in against most currencies as there are a lot of concerns out there when it comes to global trade, and of course global stability.
USD/JPY Video 24.06.19
The US/China trade relations continue to be a major sticking point, but we also have concerns about the Federal Reserve having a couple of interest rate cuts this year. If that’s going to be the case, it makes sense that we continue this downward trajectory. At this point, it’s very unlikely to see this market turned around for any significant move, but if we did break above the ¥108.75 level, this market could really start to take off to the upside. At this point though, I’m not necessarily convinced where that comes into play or what causes it, but that of course is the technical set up. All things being equal, it looks as if we are simply fulfilling the downward trajectory of what could be thought of as a much larger consolidation area between the ¥105 level on the bottom, and the ¥115 level on the top. Patience will be needed to profit.
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This article was originally posted on FX Empire
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