USD/JPY Forecast January 26, 2017, Technical Analysis

The US dollar rallied against the Japanese yen after initially falling on Wednesday. The 112.50 level appears to be supportive, but I also recognize that the 115 level is resistive. If we can break above the top of the shooting star, then I am more than willing to go long on a longer-term trade. In the meantime, I continue to buy short-term pullbacks as they offer value in a market that I believe eventually will break out and continue the uptrend to much higher levels. As long as the Federal Reserve continues to look to raise interest rates, this pair will continue to go higher.