USD/JPY Price forecast for the week of March 12, 2018, Technical Analysis

The US dollar has rallied a bit during the week, bouncing from the uptrend line that coincided nicely with the 105 level. That’s an area that should be support longer term, so I think at this point we are trying to build up a base from which to rally. If we can break above the 107.50 level, the market is likely to continue to go much higher, perhaps reaching towards the 110 handle. If we can break above that level, then the market goes much higher, perhaps reaching towards the 114 handle.

The uptrend line underneath should offer plenty of support, and I think that if we can find plenty of buyers in that area, it’s likely that the uptrend continues, as the uptrend line is so crucial. However, if we were to break down below the 105 level, that could send this market down to the 100-level underneath. That is essentially parity with this market, and obviously an area that will offer a lot of interest. The market tends to move with the overall risk appetite, so pay attention, this could be a driver of where we go next. The stock markets have a lot of influence longer-term, and I think that the longer-term outlook for this pair is a bit higher from here. That’s not to say that it’s easy to go higher, and I think it will continue to be very noisy. I would have a smaller position for longer-term trades to simply hang on and ride out the move to the upside.

USD/JPY Video 12.03.18