USD/JPY forecast for the week of August 22, 2016, Technical Analysis

The USD/JPY pair fell during the course of the week, testing the 100 level. This is an area that has quite a bit of psychological significance level, so having said that it’s difficult to imagine that the market will simply break down through it with ease. Because of this, I think you can count on quite a bit of short-term volatility, and that given enough time potential rallies. A break down below the bottom of the candle for the week could send this market much lower, but you also have to worry about the Bank of Japan getting involved at that point in time. At this point in time, it’s probably better to trade this market on short-term charts.