USD/JPY Price Forecast December 4, 2017, Technical Analysis

During the Friday session, the USD/JPY pair was very noisy in general. However, what really got things moving was when General Flynn suggested that he was willing to testify against the White House and the Russian broke. That had a lot of people scared, and the market collapsed. As I record this, we still see a lot of volatility, and it is of course a very fluid situation. I think that what has been exacerbating this move is that we are going into the weekend, and that likely means that we will get a lot of conflicting headlines over the next couple of days, and that could mean a lot of danger in this market. It makes a lot of sense to collect profits if you are up in your trade now, and simply reset things on Monday as not been able to react during the weekend could be disastrous.
At this point, I believe that a breakdown below the massive candle on the hourly chart would be catastrophic, as it would show that the sellers still have a long way to go. Alternately, if we managed to close above the 112 level and don’t get massive bombshells coming out over the newswire during the weekend, then I think we can go much higher. At this point, quite frankly think that we are trading on emotion more than anything else, which is a great way to lose money in the Forex markets as sentiment is very fickle during these types of situations. If you are not in the market, you are probably best served to let it have 24 hours of trading to tell you where it wants to go next.