USD/JPY Price Forecast February 8, 2018, Technical Analysis

The US dollar has been very noisy against the Japanese yen during the trading session on Tuesday, so it’s likely that the market should continue to be so. I believe that the risk appetite out there is getting pummeled a bit, so this pair will more than likely move right along with the S&P 500, and as that being the case it’s likely that we will continue to be very noisy. I think that the 108.50 level underneath is going to be massively supportive, and I believe that buyers will come back in that area. That area extends down to the 107.50 level and is a bit “squishy.”

Market participants will be very skittish after the recent selloff in several different assets, so I anticipate it’s going to be difficult to trade this pair. The 110 level above is my target, but I would not jump in with both feet as there is so much out there that could split the market again. If we can break above the 110 level, that would be a good sign, and we should then go to the 111 level, followed by the 112 level. When you look at the longer-term charts, we have consolidation that extends all the way to the 114 level above, so I believe that eventually we may try to reach that level, but it’s going to be difficult to do. Most people who do not like volatility should probably stay out of this pair in the meantime. I’m waiting for it to reach one of the outer boundaries to place a trade in the opposite direction. Right now, we are essentially in “no man’s land.”