USD/JPY Weekly Price Forecast – US Dollar Has a Brutal Week

US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar initially tried to rally a bit during the course of the trading session on Monday, but then since then we have just seen a lot of selling pressure for the week. Friday may end up being one of the last nails in the coffin as the jobs report showed that the Americans added just 114,000 jobs to the payrolls last month and instead of the anticipated 175,000.

So, with that being said, I think you’ve got a situation where we could see a bit of a drop down to the 141 yen level if the pressure keeps up. If we rally from here and can recapture the 150 yen level, then that would be a very strong and important move. I think longer term traders though are starting to fear the global economy slowing down. And if that’s going to be the case, we could see a run towards the Japanese yen for safety.

We are right at an inflection point and it’s not quite a signal yet for the long term, but it’s certainly in the neighborhood. We will have to watch this over the next couple of days, but it certainly looks very anemic. Because of this, I am debating on a trend change, but only after we get a bit of confirmation. Time has taught me that reacting to the volatility can get you hurt if you jump into it with a massive position. The market continues to see a lot of fear out there, so the yen may have finally been saved. The long-term outlook is changing quickly at this point.

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