USD/JPY Price Forecast February 22, 2018, Technical Analysis

As you can read my synopsis above, the US dollar has initially pulled back during trading on Wednesday but found enough interest near the 107.50 level to bounce a bit, showing that we are trying to break above the 108 level. If we do, I think we clear a lot of the selling pressure that had been an issue over the last several sessions. I think that if we can break above the 108 level, the market probably then targets the 110 level after that. Should be a lot of noise, but keep in mind that the market tends to follow the overall risk appetite around the world, especially stock markets.
If stock markets start to rally, that could be reason enough to send this market higher. Otherwise, if the stock markets fall, this pair could drop as well. If it does, the USD/JPY pair will likely go to the 105 level after that. I think this is probably going to eventually bring up value hunters, so although we could fall from here, the downside is probably limited at this point. I think that longer-term traders are looking at this as a potential opportunity for building a longer-term “buy and hold” core going forward. I think that a lot of the negativity should abate soon.

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