USD/JPY Price Forecast February 1, 2018, Technical Analysis

The US dollar has done very little during the trading session on Wednesday, as we continue to bounce around the 109 level. This is a market that should continue to be very noisy over the next couple of sessions, at least until we get the jobs number on Friday. In the meantime, it’s probably best left alone, but we are starting to see this market form a bit of a base towards the bottom of the overall consolidation for the last couple of years. The markets should continue to reach towards the 110 level if the jobs number is decent, and break above there if it is good.

I believe that there is a bit of a “floor” at the 107.50 level based upon the Fibonacci retracement levels that I have plotted on the chart from the last move. If we were to break down below there, then the market is very likely to go down to the 105 handle after that. That of course is a large, round, psychologically significant figure, and should attract a lot of attention. There is a massive cluster of noise just below there that should offer plenty of buying opportunities, so even if we do break down, I believe it is a short-term move at best.

Longer-term, I believe that this market is trying to pick up its feet, because remember – although the US dollar is soft against most currencies, if there is general optimism in the marketplace, the USD/JPY pair rallies, even if the other currencies are beating up on the greenback.