USD/JPY Forecast February 3, 2016, Technical Analysis

The USD/JPY pair fell significantly during the course of the session on Tuesday, as it appears we are trying to find significant support below. There is quite a bit of support at the 118.50 level, but quite frankly we don’t even know that were going to get all the way down to that area. If we get a supportive candle, we are more than willing to start buying again, as the market should bounce significantly and reach towards the 123.50 level. We have no interest in shorting this market, the Bank of Japan threatening negative interest rates of course will continue to weaken the Japanese yen.