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USD/JPY forecast for the week of January 2, 2018, Technical Analysis

USD/JPY traders send this market lower over the last several sessions, but with the jobs number coming out this week, it’s likely that we will see a bit of volatility. Currently, I think we are between a couple of major areas and are also struggling with a lack of volume. · FX Empire
Christopher Lewis
Updated

The US dollar fell during the course of the week against the Japanese yen, but quite frankly the US dollar struggled significantly against most currencies that I follow. Because of this, I think that the market is probably going to drop from here, perhaps testing the 112-level underneath which should be supportive. If we break down below that, then we go looking towards the 111 level. Ultimately, I think that the market could go higher based upon a “risk on” attitude, but we probably have to get the jobs number all the way and see the reaction to put serious money to work. If we were to break down below the 61.8% Fibonacci retracement level underneath, that would be a much more significant break down and we could go as low as 108. The Forex world seems to be dollar negative currently, but if we get a “risk on” attitude around the world, that typically will help this pair.

You can see that we spent most of 2017 in a trading range, and although it looks like we could be in a smaller trading range right now, we have spent a lot of time towards the top half of that yearly trading range, and that suggests to me that we will eventually see buyers jump in and push this market to the upside. Once we break above the 115 handle, that would be an extraordinarily bullish sign and send this market much higher.

USD/JPY Video 02.01.18

This article was originally posted on FX Empire

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