USD/JPY Forecast June 8, 2017, Technical Analysis

The US dollar has chomped around during the session on Wednesday, against the Japanese yen. Because of this, looks as if the market is trying to find some type of stability just above the 109 level, and although this is a positive sign I anticipate that any rally at this point will struggle to get above the 110 handle. A break above there would be very bullish, but I don’t think that’s going to happen. This is mainly because the 110 level was the 50% Fibonacci retracement level on the longer-term move, and I believe that the sellers will jump into this market and start pushing it much lower. I still have a target of 108, which is the 61.8% Fibonacci retracement level for that same move.
Risk on/risk off
This pair of course is very related to “risk on/risk off” attitude. If we suddenly get some type of bullish move in the stock markets or commodity markets, we could get that bullish move that sticks, but in the meantime, I think there is more likely bearish pressure coming into the markets in general, least for a pullback. I would love to buy this pair near the 108 handle, as it represents an extreme amount of value. A breakdown below there send this market much lower, perhaps a 102 level and would be accompanied by some type of massive move. I don’t think it’s going to happen, so I am simply waiting for some type of bounce are supportive candle on the daily chart to start buying, with more than likely selling opportunities on the short-term chart. In other words, this pair will probably be a mass but right now it seems content to build up momentum in one direction or the other. Again, the most important thing is that I won’t be a buyer until we clear the 110 level.
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