USD/JPY Price Forecast January 26, 2018, Technical Analysis

The US dollar has broken down significantly over the last couple of sessions, and Thursday so more selling pressure. The market looks likely to continue to go towards the 100% Fibonacci retracement level, which is closer to the 107.50 level. While I certainly think that the negativity continues, I also recognize that we might be a bit oversold, and I certainly think that once we broke down below the 110 level, we were destined to wipe out the entire uptrend. I think that rallies at this point in time or to be looked at with suspicion, and I am more than willing to sell this pair on exhaustive candles after short-term rallies.

Although this pair tends to be reactive to the stock markets in general, I don’t think that’s the case now. I think this is more about the US dollar, and I think that we will continue to go much lower, but I also recognize that the 107.50 level should be rather important for support. In the meantime, I think we will get jumps back and forth, because obviously a market can’t move in one direction forever. If that’s the case, then I think that it is only a matter of time before we can get back into this market and start selling it yet again. If we were to break above the 110 level, then I feel that the market should continue to go higher. That seems to be very unlikely and the short-term though and would be a bit of a shock.

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