USD/JPY Weekly Price Forecast – US Dollar Choppy

The US dollar has been very noisy during the course of the week to turn around and form a bit of a hammer. This is preceded by an inverted hammer as well, so that suggests that the market is likely to see a lot more back-and-forth action than anything else. The market continues to see a lot of indecision, possibly due to the fact that interest rates in the United States continue to strengthen.

USD/JPY

Beyond that, this is a market that also is pretty extended to the downside so with this being the case, I believe that you are probably going to see very noisy behavior due to the massive amount of selling pressure just above, but at the same time it looks like we are trying to turn around and show signs of strengthening. In other words, I think it is almost impossible to place a longer-term trade here, unless of course you are willing to hang onto a lot of volatility. Quite frankly, I think there are easier trades to make but one thing you can say about the pair is that we are most certainly extended to the downside so it might be time for a significant bounce.

Quite frankly, I am pretty neutral on this market from a longer-term standpoint, simply because we have seen so much choppiness on the way down that it would take some type of bigger fundamental catalyst to break through all of that and get things moving again. In the meantime, I will probably look at this as more or less a scalping type of market on shorter time frames, perhaps the best suited for day trading.