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

The US dollar has fallen during the day on Wednesday, reaching towards the 106 level. That’s an area that has a bit of psychological importance, but at the end of the day it’s not a major level. I think the 105.50 level is much more supportive underneath, and that will be where value hunters could return to the marketplace. The 105-level underneath is even more supportive, so I think it’s more of a zone that we are looking at, and less of a level. If we were to break down below that 105 level, that would be extraordinarily negative for the US dollar, sending it down to 100.



The alternate scenario of course is that we get bullish pressure and it looks likely that we will reach towards the 107.50 level, but obviously this is going to take some help from the Federal Reserve. I believe that the next 24 hours will be very rocky and noisy but could give us some form of clarity as to where we are going next. In general, I believe that we will find value hunters eventually, but it’s going to take a bit of help. The next 24 hours could very well determine where this pair goes for the next several months. Because of this, be very cautious and you small position sizing until the market proves you correct.