USD/JPY Weekly Price Forecast – US Dollar Reaches Towards Big Figure

The US dollar has rallied significantly during the course of the week to reach towards the ¥105 level, which is a big figure that will attract a certain amount of attention. If we can break above the ¥105 level, then we may continue to see more pressure to the upside. This is possibly a side effect of the yields in the United States rallying, but at this point the Japanese yen is being dumped in order to also send this market a bit higher. If we can get a weekly close above the ¥105 level, then it is likely that we could go to the upside.

USD/JPY Video 01.02.20

To the downside, the ¥104 level should be a significant amount of support due to the fact that it has previously been important, but at this point in time I think it is only a matter of figuring out whether or not risk appetite continues to strengthen due to the virus being controlled by the vaccine, which creates a little bit of a feedback loop when it comes to the US dollar strengthening, because the higher yields will make the greenback more attractive, but at the same time the Japanese yen gets sold off due to the “risk on” attitude.

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On the other hand, the ¥105 level could offer significant resistance, and continue to push this market lower. We are in a longer term downtrend, so that is something worth paying attention to, but another thing that you need to be looking at is the US Dollar Index which is trying to form some type of supportive action in this general vicinity which could have an influence as well.

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