USD/JPY Forecast February 2, 2016, Technical Analysis

The USD/JPY pair fell significantly during the course of the session initially on Monday, but turned back around in order to form a nice hammer. The hammer of course suggests that we could eventually continue to go higher and we think that will be the case due to the fact that the Bank of Japan has been fighting with negative interest rates. That being the case, it’s probably only a matter of time before we reach all the way to the 123.50 level. We have no interest in selling, and look at pullbacks as essential value in the US dollar.