USD/JPY Price forecast for the week of January 8, 2018, Technical Analysis

The US dollar has fallen during most of the week, but then turned around to rally significantly and form a hammer. The hammer of course is a very bullish sign, and a break above the top of that hammer should send this market towards the 115 level. The 115 level above is massive resistance, and if we can break above there, and give us the market license to go much higher. When you look at the longer-term charts, you can see that we have been find plenty of support underneath, and I believe that we are eventually trying to build up a bit of a base to go much higher. Once we get that moved, this could be a “buy-and-hold” scenario, where the market would favor buying dips and perhaps go looking towards the 120 handle above. This will be a noisy market, but that’s nothing new for the pair, as it tends to be very noisy in general.

It’s not until we break down below the 110 level that I would be concerned with the uptrend, or at the very least the consolidation. I think that eventually the buyers will be attracted to this market based upon a “risk on” move in the stock markets, and of course level growth. There will be headline risks of course, as the Japanese yen tends to be picked up when people are concerned, but those should be short-term moves.

USD/JPY Video 08.01.18