USD/JPY Forecast August 7, 2017, Technical Analysis

USD/JPY daily chart, August 07, 2017

The US dollar went sideways initially on Friday, hovering above the 110 level. We shot to the upside after that, as the jobs number was much better than anticipated, and that of course suggests that the Federal Reserve may be willing to raise interest rates quicker than originally thought. I think a lot of the traders out there thought that perhaps the Federal Reserve wasn’t going to be able to raise rates as they anticipated, but clearly that is going to be case. At this point, I believe that pullbacks should be buying opportunities, and the 110-level underneath should be massively important and more importantly, supportive.

Buying dips

I continue to buy dips, reaching towards the 112.50 level. The market should be volatile, but I think has plenty of bullish pressure underneath after we have seen such an impulsive move. I believe that the “anti-dollar” trade is probably being unwound, and that should continue to push this market higher. Ultimately, I believe that the market will have a significant amount of buying pressure underneath, but there will course be volatility from time to time. Ultimately, I think that consolidation is probably more likely to be the case, with an upward bias. A breakdown below the 110 level changes everything, and since is looking towards the 108-level underneath, but that seems to be very unlikely to happen.

Written by FX Empire