USD/JPY Forecast October 15, 2014, Technical Analysis

The USD/JPY pair initially fell during the day on Tuesday, but found enough support at the 107 level in order to form a hammer. The hammer of course suggests that we could bounce from here, and as a result a break above the top of the hammer has us thinking that it’s time to start buying the US dollar yet again, as the trend is most certainly to the upside at this point in time. We believe that the market will then head to the 110 level, as the market continues to try to break out to the upside and continue going higher in favor the US dollar.