USD/JPY Forecast February 15, 2016, Technical Analysis

The USD/JPY pair initially fell during the course of the day on Friday, turning back around to form a hammer. The hammer for the Friday session is preceded by a hammer for the Thursday session. Because of this, I feel that the market will bounce and perhaps reach towards the 115 handle. The area near 115 should be very resistive, so given enough time we feel the market will form a resistive candle that we can start selling again. On the other hand, if we break down below the bottom of the hammer from Thursday, that is also a very negative sign and have sellers coming back into the market.