USD/JPY Forecast February 28, 2017, Technical Analysis

The USD/JPY pair went back and forth on Monday, as we continue to test the 30.2% Fibonacci retracement level. This is an area that should continue to offer support, and I think the support runs down to roughly 111.50. If we can break down below there, then I believe the market reaches towards the 110 level which is essentially the 50% Fibonacci retracement level. Alternately, if we can reach above the 112.50 level, the market should then go to the 115 handle. Longer-term, I still believe that the market is going to go higher, but we may need to pull back.