USD/JPY Forecast June 30, 2017, Technical Analysis

As I write this, the USD/JPY pair has seen buying pressure during the session on Thursday, but has pulled back from the precipice of the 113 handle. However, were starting to see a bit of support near the 112.50 level, which was an area that was resistive previously. This is classic technical analysis, and with the 24-hour exponential moving average just below, I believe it is probably just a matter of time before the buyers step in and start buying again. Remember, this pair is highly sensitive to risk appetite, which seems to be doing fairly well. If that’s the case, we should continue to see this market grind to the upside, reaching towards the 113 level again, and then eventually the 114 level. While the US dollar has been beat up against most currencies, the Japanese yen is a bit of an outlier as it is considered to be a “safe haven.”
Buying pullbacks
I’ve been saying for a while the buying pullbacks of this pair is probably the best way to go, and we are currently seeing one that is a prime candidate. I think that once we break above the 115 level, it will bring in the next major leg higher, but in the meantime, we will see a lot of volatility. I have no interest in shorting this market unless of course we get well below the 112 level, and even then, I think it is going to be a very bumpy road down to the 111 level. Pay attention the stock markets, if we continue to go to the upside, this pair will mirror that action, especially when it comes to the S&P 500, which tends to be very similar in price action to the USD/JPY pair over the longer term.