USD/JPY Price Forecast February 2, 2018, Technical Analysis

The US dollar has rallied a bit during the trading session on Thursday, reaching towards the 110 level before pulling back a bit. It looks as if the 109.25 level is trying to offer a bit of support, and I do think that eventually we will make a significant move. The 110 level being broken to the upside is a very bullish sign and it should send markets much higher, perhaps reaching towards the 114 level over the longer term. The 112 level will be reached along the way, and I think that area could cause a bit of trouble.

However, the jobs number will influence where we go next, so if we breakdown from here, it’s likely that the 108.50 level will offer support again, extending down towards the 107.50 level which I see as massively supportive. Longer-term, I like the idea of buying pullbacks, as it gives me an opportunity to pick up value, but the jobs number in the risk appetite overall will greatly influence him where we go next. The better the jobs number, typically the better this pair does. That’s the same thing with the S&P 500 as well, as it has a massive influence on risk appetite, which generally means selling the Japanese yen and pushing this market higher. Volatility is the order of the day, but I think we will eventually get clarity.

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