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

The US dollar has initially pulled back during the trading session on Thursday, reaching towards the 106.50 level, before bouncing towards the 107 handle. Ultimately, the market looks likely will reach towards the 107.50 level, and then perhaps the 108 level. The market looks to be very noisy, but I believe that the 106.50 level underneath will continue to offer a bit of support. I think that we are going to continue to find buyers, especially if the stock markets start to pick up again. I think that the market should then go to the 110 level, and then perhaps the 114 level after that.

I think there is a massive amount of support near the 105 level, an area that has been important both psychologically and structurally in the past, so a breakdown below that level would be catastrophic for this pair, almost certainly guarantee a move down to the 100 level. Longer-term, I believe that the market should continue to find plenty of reasons to go higher, especially if interest rates in America continue to rise, as the interest rate differential between the 10-year notes of both countries will more than likely drive where we go next. I think that given enough time, we will see much higher pricing, but this is more of a longer-term target than anything else. I believe that the market will continue to be noisy, but pullbacks continue to offer value that plenty of people are willing to pick up when offered.

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