USD/JPY Forecast July 28, 2017, Technical Analysis

USD/JPY daily chart, July 28, 2017

The US dollar fell initially during the day on Thursday but found enough support near the 110.80 level to turn around and break back above the 111 level. This is a bullish sign, and I think that the market is going to go looking for the 112 level above. I find this interesting, because as I record this it is already trying to take back most of the losses from the previous session and the FOMC dovish statement. Because of this, I think that the market will continue to be volatile, but I won’t be completely convinced until we break above the 112.25 handle to start buying. I think that we could see selling come back into the marketplace, based upon the US dollar, not the Japanese yen.


Looking at the market, all I see is volatility, and short-term trading at best. We could go looking towards the 112 handle for the short-term, but I also say it’s just as likely that we go down to the 110.75 level underneath. This being the case, is very likely that the market will continue to be a back and forth type of range bound affair, because I do believe that there is a certain amount of support underneath to keep this market a lease somewhat afloat. Long-term trading is almost impossible, because there are so many moving parts and of course so much volatility. That being said, I believe that you will need to be very cautious when trading this market.

Written by FX Empire