USD/JPY Forecast May 31, 2016, Technical Analysis

The USD/JPY pair initially tried to rally during the course of the day on Monday, but found the area near the 111.50 level to be a bit too resistive. The resulting shooting star candle suggests that we are going to pull back and perhaps trying to find support below, most notably near the 110 level. This is a market that should continue to go higher given enough time though, so we look at any pullback as potential support. We also like the idea of buying a break above the 112 level as it would show a significant amount of momentum on a move higher.

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