USD/JPY Forecast March 31, 2017, Technical Analysis

The USD/JPY pair rallied a bit during the Thursday session, as the 200-exponential moving average continues to offer support. If we can break above the 112 handle, we should then reach towards the 112.50 level, and a break above there would be very positive as well. On the other hand, if we continue to drift lower I believe that we will test the 50% Fibonacci retracement level again at the 110 handle. Either way, expect a lot of volatility but I still believe in the longer-term picture here, and think that buying is still the right thing to do but you must be able to deal with quite a bit of volatility.