USD/JPY Price Forecast January 31, 2018, Technical Analysis
The US dollar has been very noisy during the trading session on Tuesday, reaching down towards the 108 handle. I think that longer-term, we will probably go looking towards the 107.50 level, which would be a complete wipeout of the overall uptrend that we had been in for some time. The US dollar continues to get hammered against most currencies around the world, and the Japanese yen has been one of the beneficiaries. Having said that, stock markets looking healthy and rallying is a bit counterintuitive to this market falling, so this is one of my least favorite US dollar shorts right now.
As far as buying is concerned in this market, I would not be inclined to do so until we break above the 110 handle, something that doesn’t look very likely to happen. I much more interested in shorting the small rallies that we will get occasionally, using this market to scalp the Japanese yen. I would not put a lot of money into this market, because quite frankly I think we are going to attempt to build some type of face just below. However, that does not keep you from scalping little bits and pieces, and perhaps adding to your daily gains. If we did break above the 110 handle, albeit unlikely, I anticipate that the market within go reaching towards the 112 level. I think a lot of choppiness is probably what we are about to see.