USD/JPY Price Forecast February 12, 2018, Technical Analysis

The US dollar has initially tried to rally during the session on Friday but found enough resistance above 2 fall and start struggling again. I think there is a massive amount of support near the 108.50 level, that extends down to the 107.50 level, so I’m not interested in selling. However, I would be a buyer right away either, as we could see a lot of noise. Because of this, it’s likely that we will continue to see a lot of “scared money” featured in this market. I would like to see some type of daily supportive candle to start buying, or a fresh, new high on the hourly chart. As I record this, it’s very unlikely that the market is ready to break down significantly, so I am reasonably confident that we will bounce, as the 107.50 level has been so reliable.

If we were to break down below there, the market will probably go down to the 105-level next, but that would coincide with a lot of negativity in the stock markets overall. I would be the first point out that the USD/JPY pair has held up quite nicely as the stock markets in America have sold off drastically. That’s a very good sign, and with that being the case I would anticipate that eventually buyers will get involved. The market has been consolidating for some time now, so a breakdown would of course be a big event. Until then, value hunters will return.