USD/JPY Price Forecast February 26, 2018, Technical Analysis

The US dollar has fallen a bit during the Friday trading session, reaching towards the 106.75 level. Ultimately, if we can break down to a fresh, new loan, I think that the market should continue to go lower, perhaps to the 105.50 level, perhaps even lower than that. I believe that the market should continue to sell off, as the US dollar has been struggling. The weekly candle is a shooting star, which is a very negative sign, as we failed at the 107.50 level above.

Ultimately, I think that the market is going to continue to be very choppy, but it’s obvious to me that the dollar has a lot of issues. I think that the market continues to show a lot of volatility, but that’s not a huge surprise when it comes to this pair, as it is quite sensitive to risk appetite and of course the follies of the US treasury market. Both of those factors have been erratic lately, so it makes sense that traders have become a bit skittish.

Ultimately, I think that we will probably continue to drift a bit lower, but we should find enough support underneath to start buying. I believe that the market will eventually find some type of bottoming pattern underneath, but we aren’t there yet. Anticipate a lot of short-term trading in this market at best, I think it will be difficult to hang onto a position for very long, as I see so many areas of concern. In fact, I would advise using half the usual trading position.

USD/JPY Video 26.02.18