USD/JPY Forecast June 21, 2017, Technical Analysis

USD/JPY daily chart, June 21, 2017

The USD/JPY pair fell slightly during the day on Tuesday, reaching towards the 111.40 level. There is a significant amount of volatility in this market, and with that being the case it’s likely that the buyers will get involved sooner rather than later, but we are at the top of a consolidation area, so we can break above the highs for the day, then the market should continue to go higher. The 111-level underneath should continue to be supported, and most certainly the 110 level will be. The Federal Reserve looks likely to raise interest rates over the next year or so, and that should continue to help the overall attitude of this market. I believe that a break above the 112.50 level should continue to go much higher, perhaps reaching towards the 114 handle, and then the 115 level. Nonetheless, it’s going to be very choppy on the way up so I think you will have to be very cautious.

Still buying dips

Granted, the recent action hasn’t exactly been overwhelmingly positive, but I think that longer term we continue to see a general uptrend form, and we should continue to see the buyers take advantage of pullbacks for value as the fundamental situation most certainly benefits this pair to the upside. I think that selling is going to be very difficult to do, and as a result I will step to the sidelines any time we dip. Once we show signs of support underneath, then I am willing to start buying based upon the longer-term value that it could present. In the meantime, expect a lot of noise but I think the buyers will come out on top.

Written by FX Empire