USD/JPY Weekly Price Forecast – titrating continues
The US dollar has continued to grind against the Japanese Yen overall, struggling to find any real significant momentum. If we can break through the downtrend line on the large symmetrical triangle, I think this will begin a much longer term bullish run in this market. Otherwise, we will probably reach down to the ¥108 level. This is a market that is highly sensitive to the Sino-American trade relations, which of course are on the rocks right now, but it is typically at the worst times when the big money comes in and starts betting the other way. This is part of the reason that I feel somewhat bullish about this pair, and I also recognize that the interest rate differential will continue to be a major part of this situation.
At this point, it’s difficult to put a lot of money into this market, but I would become much more aggressive on a break of the downtrend line. At that point, I think we would be looking at more of an investment and less of a trade. In other words, you can buy it every time it dips, and we could rise to very high levels over the next year or two. In the meantime, the market simply await some type of decision by negotiators as to whether or not things are going to get better or worse. Think of this pair as a barometer to the attitude between the Americans and the Chinese.
USD/JPY Video 03.09.18
This article was originally posted on FX Empire