USD/JPY Price Forecast November 27, 2017, Technical Analysis

The US dollar rallied slightly against the Japanese yen on Friday, and what would have been relatively light volume as Americans were away celebrating the thanks giving holiday. The market has a significant amount of resistance built-in at the 112 level, as it was significant support previously. I suspect at this point we will see exhaustion above, and that exhaustion could be sold. If we stay below the 112 level, that signifies that the market may go looking towards the bottom of the overall consolidation, which is the 108 handle. That would be a major move, and could be a move that you can start selling aggressively. However, if we were to turn around and break above the 112 handle on a daily close, I think that the market would go looking towards the 114.50 level above, which is the beginning of significant resistance to the 115 handle above. If we can break above the 115 handle, the market should then go to the 118.50 level. In general, I think that the market will probably remain volatile, as the US dollar is suffering at the hands of the U.S. Congress not being able to pass a tax bill.
In general, the markets look likely to need to make a decision relatively soon, so a fresh, new low or an exhaustive candle in this general area should be a nice selling opportunity down to the 108 handle, just as a break above the 112.50 level would show the market looking for the 114.50 level but this would be a slower move in my estimation. Pay attention to the 10-year treasury notes, if the interest rates continue to climb, that should help the US dollar against the Japanese yen. I suggest that a small position is necessary until we get some type of clarity. As soon as we get the clarity, adding to your position as possible.