USD/JPY Price Forecast January 19, 2018, Technical Analysis

The US dollar has pulled back a bit during the trading session on Thursday, reaching towards the 111 level. However, this is an area that has offered support and resistance in the past, so it doesn’t surprise me that we have bounce. By bouncing, it looks likely that we will reach towards the 112 level again. Remember, this pair is highly sensitive to risk appetite in general, and I think that the market continues to be very noisy, but that’s nothing new for the Japanese yen in general.

As a rule, I buy this pair when the S&P 500 rallies, and sell it when the S&P 500 breaks down. Ultimately, this is a market that I think we are going to continue to find support near the 110-level underneath, as it was the 61.8% Fibonacci retracement level. With all of this noise, I am a buyer in general, but I also realize that it will be short scouts that you will be taken advantage of, not a longer-term trade. Markets continue to be very choppy, so because of this the market should be respected. I believe that the attitude of the market will vary from day-to-day, so be very nimble if you are going to risk money. If we break down below the 110 level, the market should then break down to the 107.50 level. However, that seems very unlikely to happen anytime soon, as the pair seems to always find support.

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