USD/JPY Price Forecast March 14, 2018, Technical Analysis

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Updated: Mar 14, 2018, 05:37 UTC

The US dollar rallied initially during the day on Tuesday against the Japanese yen but has pulled back slightly and what I believe is an attempt to build up enough momentum to finally break above the 107.50 level. That’s an area that should be important, as it has previously been massive support. I think the market will eventually break above there though, especially if we continue to get good economic news.

The US dollar has rallied significantly against the Japanese yen during the trading session on Tuesday, reaching as high as 107.25 before I recorded this. We are pulling back slightly, but I think that there are buyers underneath willing to push to the upside. If we can break above the 107.50 level, the market could extend gains to the 110 level over the longer term. Recently, we have been making “higher highs”, and therefore it looks like we are trying to build up the necessary momentum to finally break out. Because of this, I don’t have any interest in shorting this market, as it looks like the USD/JPY is trying to form some type of basing pattern.

USD/JPY Video 14.03.18

At this point, I anticipate a breakout of the next couple of sessions and think that it’s only a matter of time before that happens. When it does, we could see a significant move. On the other hand, if we were to break down below the 106 handle, then it would be very negative, and I think that the pair could fall apart to the 105 level. With the CPI numbers coming out as expected in the United States, the market has been reacting in a “risk on” attitude in other pairs, and I feel it’s only a matter of time before that follows here.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.