Japanese Yen Forecast: USD/JPY Rips Into Resistance- Bulls Eye 110

Yen, Money, Wealth, Japanese Yen

JAPANESE YEN TECHNICAL PRICE OUTLOOK: USD/JPY WEEKLY TRADE LEVELS

  • Japanese Yen technical trade levels update – Weekly Chart
  • USD/JPY breakout extends into confluent uptrend resistance
  • Constructive while above 107.83 – Key resistance at 109.68/92

The Japanese Yen is down more than 0.7% against the US Dollar this week with the multi-month rally in USD/JPY extending into resistance at nine-month highs. While the broader technical focus remains weighted to the topside, the immediate advance may be vulnerable while below this key threshold and we’re looking for possible inflection in the days ahead for guidance. These are the updated targets and invalidation levels that matter on the USD/JPY weekly price chart heading into tomorrow’s highly anticipated FOMC rate decision. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Yen technical setup and more.

JAPANESE YEN PRICE CHART – USD/JPY WEEKLY

USD/JPY

Chart Prepared by Michael Boutros, Technical Strategist; USD/JPY on Tradingview

Notes:In my last Japanese Yen Weekly Price Outlook we highlighted that the USD/JPY rally was, “testing confluence uptrend resistance – the immediate long-bias may be vulnerable while below 109.68/92… be on the lookout for topside exhaustion into this resistance zone.” Price rallied into this threshold on Friday and the focus remains on possible inflection off this zone.

An outside-week reversal into this high suggests the risk for near-term exhaustion with initial weekly support eyed back at the median-line (currently ~108.60s) and the 2017 low-week close at 107.84- a break / close below this threshold would be needed to suggest a more significant high was registered this week. A topside breach here would likely fuel another bout of accelerated gains for the Dollar with such a scenario exposing subsequent resistance objectives at the 2019 / 2020 high-week closes at 111.53/60 and the 61.8% retracement of the late-2016 decline at 111.98.

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