Yahoo Finance USD/JPY Price Forecast February 16, 2018, Technical Analysis
The US dollar should continue to drift lower against the Japanese yen, and I believe that we are going to go looking towards the psychologically significant 105 handle. There’s a lot of noise below, so I think that if you are going to go against the US dollar, it’s probably easier to do using other currencies, simply because this is a market that has sold off rather drastically. Beyond that, the Japanese yen tends to be a bit of a safety currency, so if the stock markets rally significantly that could put a little bit of upward pressure on this market.
If we were to break above the 107.50 level, it’s likely that we will continue to go higher, breaking back into the previous consolidation area. This is a market that does tend to be very noisy, so by all means I would be small with my trading position, and perhaps add if the market goes in my favor. At this point, shorting is probably the smart thing to do, but I still believe that there is a ton of support underneath. Because of this, you need to be able to handle a lot of volatility, but clearly the sellers are starting to make their presence known in this market, as we continue to see a lot of US dollar negative attitude. I think that the bond markets of course will continue to drive where this pair goes, and the US bonds have been selling off.
USD/JPY Video 16.02.18
This article was originally posted on FX Empire
