USD/JPY Price Forecast March 29, 2018, Technical Analysis

The US dollar exploded to the upside against the Japanese yen during the trading session on Wednesday, breaking above the 106 level. I think that the market could pull back from there, but ultimately, it’s likely that we will see support near the 105.50 level, and possibly even the 105 level after that. There is an uptrend line that sits in that general vicinity, showing signs of strength over the last couple of sessions. I believe that the stock markets can rally, this market will as well. Otherwise, it will be the first place we see sellers.

I believe that the volatility is going to continue to be very high, but in general I think we are trying to find some type of supportive action and perhaps trying to take advantage of these cheap prices. If the talk of trade wars abates, it’s likely that this pair will continue to go higher, as we are certainly reaction to those headlines. Ultimately, this market could go as high as 110, but obviously there are a lot of concerns out there in the stock market hasn’t necessarily been acting healthy over the last couple of sessions, so one would have to be very cautious with this pair, and certainly should be using small trading positions as the volatility has been so strong. Ultimately, if the market does continue to go higher, I would add slowly and build up a larger position. If we can get above the 110 level, the market should continue to go towards the 112.50 level. However, that’s obviously a longer-term call. Shorting is possible but beware of the massive amounts of noise there 105.

USD/JPY Video 29.03.18