USD/JPY Price Forecast March 1, 2018, Technical Analysis

The US dollar has fallen against the Japanese yen during trading on Wednesday, reaching down towards the 106.50 level, an area that has been supportive a couple of times. Ultimately, I think that the market will find buyers eventually, but this is the initial area that I would expect to see buyers involved. Ultimately, if we break down below the 106.50 level, the market then goes down to the 105.50 level. I think there’s plenty of support eventually but given enough time I think that you can pick up value in this market if you are patient enough. I would wait for some type daily supportive candle or an impulsive candle, so I can get involved to the upside. I don’t have any interest in shorting, least not until we break down below the 105 handle. If we do that, the market should then go down to the 100-level underneath.

If we can break above the 108 handle, I think the market then goes looking towards the 110 handle, and then eventually the 114.50 level. The market continues to be volatile, and of course driven by risk appetite. Remember, when stock markets rally significantly, it’s likely that the pair rallies as well. Obviously, the opposite happens as well, as the Japanese yen is considered to be a safety currency. Ultimately, I think that the volatility is going to continue to be a major issue, so I would use small positions more than anything else. If the trade start to work out anyway, then you can add to it.

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