USD/JPY Price Forecast March 26, 2018, Technical Analysis

The US dollar rallied initially against the Japanese yen initially during the trading session on Friday but found a lot of trouble at the previous uptrend line. This sets up an interesting trade, because it’s essentially a binary trade. What I mean by this is that if we break above the top of the shooting star, and above the uptrend line, that would be a very bullish sign and probably accompanied by tensions relaxing between the United States and China. If that happens, I suspect that we could get a very significant bounce, perhaps to the 107 level. On the other hand, things could break down a bit and that could bring in a lot of selling pressure.

USD/JPY Video 26.03.18

If we were to break down below the bottom of the candle for the session on Friday, I think that opens the door to the 101 level, which was the beginning of massive support going back to when we hit the 100 level. I think that this market will continue to be very noisy, but that’s to be expected as there are a lot of moving pieces currently. This market continues to find reasons to jump around based upon the trade war fears and considering that most of what’s about to happen will be due to words coming out of mouths of politicians, you can count on this being a very nervous market over the weekend. I suspect that Monday is going to be very noisy and difficult longer-term traders and short-term traders both will find Monday to be a very important session.