USD/JPY Forecast May 6, 2015, Technical Analysis

The USD/JPY pair initially broke higher during the course of the day on Tuesday, but found so much in the way of resistance at the 120.50 level that we turned back around to form a massive shooting star. The shooting star of course is negative, so we feel that the market is more than likely going to drop from here, just simply continuing the overall consolidation that we have seen recently. We believe that the 118.50 level continues to be the “floor” of this particular rectangle that the market seems to be very content hanging about.