USD/JPY Weekly Price Forecast – US Dollar Continues to Bounce About Against The Yen

US Dollar vs Japanese Yen Weekly Technical Analysis

The U.S. Dollar has fallen against the Japanese Yen during the week to test the 145 yen level but has also levitated a bit. The question is, now that we are below an uptrend line, do we stay below it or do we turn around and break out to the upside, giving a bit of a false breakout?

And that being said, I think we are trying to figure out which direction to go. And with that being said, if we can turn around and take out the 150 yen level, we could go much higher. That would bring back in the carry trade from what I see. And it’s worth noting that Jerome Powell has a speech late in the day on Friday from Jackson Hole that could give us a heads up as to just how loose the Federal Reserve may get.

If it sounds like not very, it’s probably only a matter of time before the carry trade picks up again and we go higher. On the other hand, if we turn around and break down below the 144 yen level, then we could see further selling and probably more wrecking of financial markets. In general, this is a market that I think continues to see a lot of volatility, but I do think you should remember, you get paid at the end of every day to hang on to this pair, so there is going to be a proclivity for people to try to get involved.

Furthermore, when I adjust the trend line, you could make it go through where we are right here as well. So, a lot is going on in this chart, and we do have a couple of major levels that could give us an idea of where we go for the next several weeks.

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