USD/JPY Forecast July 7, 2017, Technical Analysis

USD/JPY daily chart, July 07, 2017

The United States dollar initially dipped on Thursday but found enough support at the 113 level to turn around and bounce towards the 113.50 level above. However, that area was resistive, and we pulled back towards the 113 level to look for buying opportunities again. The market looks as if it will continue to grind to the upside, as the market should continue to be slightly positive. If we can rally from here, I believe that we could go to the 114 handle, and then eventually the 115 level. I believe that short-term pullbacks are buying opportunities that people will continue to take advantage of, and the jobs number coming out today will certainly have a massive effect on this currency pair as it typically does.

Looking for impulsive candles

I’m looking for impulsive candles going forward, and if we get that after the jobs number, I would be willing to buy this pair if it is to the upside. If it breaks down significantly, then I think I’m going to sit on the sidelines and wait for some type a supportive candle to pick up value again, most notably near the 112 level which I think will continue to be very important. A breakdown below there of course is very negative, and at that point I think the market could find its way down to the 110 handle. All things being equal though, I do prefer the upside in this pair and I believe that if the risk appetite comes back to the market, I am a buyer of this currency pair in general, and then perhaps even adding to the position as we will continue to grind higher longer term for what I can see. The Federal Reserve and looks likely to add several interest rate hikes in the future driving this pair higher.

Written by FX Empire