USD/JPY Price forecast for the week of January 15, 2018, Technical Analysis
Although this week was very negative, we bounced from the 50% Fibonacci retracement level from the larger move, the 111 level. This is significant, so I think it’s only a matter of time before the buyers get involved. However, I would not look for massive moves anytime soon, I think this continues to be more of a sideways type of market, so looking for range bound opportunities on short-term charts will probably pay dividends. The longer-term trader will be frustrated as it is so tightly bound at several areas within reach. The 115 level above needs to be broken for a longer-term “buy-and-hold” situation, just as a breakdown below the 110 level would send this market down to the 107.25 level. The problem is that there are so many moving pieces when it comes to the stock markets lifting this pair while having plenty of issues with the US dollar in general. In other words, it’s going to be a lot of back and forth fighting.
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The candle is rather negative, so I think that it makes sense that you can probably favor the downside on short-term charts, but again, it’s not until we break down below the 110 level that I think the sellers really start to take control. Longer-term traders would be advised that if they wish to trade the Japanese yen, they may want to do it against other currencies.