USD/JPY Forecast June 29, 2017, Technical Analysis

USD/JPY daily chart, June 29, 2017

The US dollar was very volatile against the Japanese yen. The 112 level looks very likely to offer support, so as long as we can stay above there, the market should then go to the 112.50 level. A break above there send this market looking for the 114 handle. The market is a very bullish and very risk sensitive, and I believe that the Japanese yen in general will continue to be negative as the market continues to be looking at the interest rate expectations in Japan to be very weak. I believe that the market should continue to be a “buy on the dips” type of mentality, and that of course should send this market to a positive vibe. I think that markets continue to be volatile and choppy, and of course I believe that taking smaller positions will probably continue to be the best way to play this market, as it will allow you to add to your positions as they work in your favor.

The importance of 111

I think if we break down below the 111 level however, that would be a very negative sign in at that point I would be a seller. Given enough time, I think that the short-term dips will attract a lot of people who are looking to pick up value. Given enough time, the market continues to look cheap to me longer-term, and I believe that if we can break above the 115 handle, we then begin the longer-term moved to the upside that brings back the action that we had seen during the old “carry trade” days. It has been a long time since we’ve seen that, but once upon a time you could simply by this market every time it dips and make significant amounts of profits.

Written by FX Empire