USD/JPY Forecast May 10, 2017, Technical Analysis

USD/JPY daily chart, May 10, 2017

The USD/JPY pair has been explosive during the day on Tuesday, as we have breached the 114 handle. The market will eventually go towards the 115 level above, which of course was the top of the recent consolidation area. I think that it’s only a matter of time before the market reaches there, but we may get pullbacks from time to time. Those should be buying opportunities based upon value, as the market has seen such a bullish run as of late. Ultimately, I think the 115 level will be massively resistive, but it’s likely that the market will try to break above there. It should be quite a bit of volatility, but I think the move is rather just as we continue to see so much in the way of Japanese yen weakness.

Pullbacks offer value the traders will take advantage of

I believe that the pullbacks will offer the value the traders will take advantage of. We are starting to see strength against the Japanese yen around the Forex world, and that should continue to be the case. I don’t have any interest in shorting, and I believe that the 113.30 level underneath should continue to be massively supportive. That is an area where buyers will return, but quite frankly I would not be surprised at all to see that the market cannot fall to that level. A supportive candle is all I need to see to add to that already long position, as the market has been so strong. A break above the 115 level would send this market looking for the 118 handle, but that move will take quite a bit of momentum building and therefore I don’t think it happens right away. With this, I have no interest in selling this market.

Written by FX Empire