USD/JPY Forecast February 8, 2017, Technical Analysis

The USD/JPY pair broke higher during the Tuesday session, reaching towards the 112.50 level. If we can close above there, that would be a very bullish sign and should send this market looking for the 115 handle above. I see a lot of support just below, so although things have been bearish as of late, we still have a significant possibility of strength coming back to the US dollar. A breakdown below the 111.50 level would signify a move down to the 110 handle, but at this juncture it looks like it is going to be a real struggle.