USD/JPY Forecast February 4, 2016, Technical Analysis

The USD/JPY pair had a very negative session during the day on Wednesday, slicing well below the 118.50 level. Because of this, it puts the entire idea of a bounce or a continuation of the move higher at serious risk. We believe that this market will more than likely see a lot of volatility and with the jobs number coming out on Friday, it will of course be very difficult to handle over the next several sessions. At this point though, you have to believe that the sellers will come out every time they get an opportunity to and punish the US dollar.