USD/JPY Price Forecast November 15, 2017, Technical Analysis

USD/JPY daily chart, November 15, 2017

The US dollar initially tried to rally during the session on Tuesday, but found significant resistance at the 113.90 level. By pulling back, we reached towards the 113.50 level, finding support yet again. Ultimately, the market looks as if it is tried to rally from here and I believe that there is even more support at the 113 handle. Rallies from this area should send the market looking towards the 114.50 level above which is resistance. I think the market continues to consolidate in general, as we have so much noise in the market, and I think that you need to look at the market as one that favors sideways trading and range bound trading in the short term. If we can finally break above the 115 handle, then the market can go much higher, offering more of a buy-and-hold attitude.

If we were to break down below the 113 level, the market could drop to the 112.50 level, and then possibly the 112 level. There is a downtrend line from the previous downtrend channel that sits underneath that could offer support that we have broken above, and that should give us an opportunity to go long as well. Because of this, I believe that the market should continue to favor the US dollar in general, and of course the interest rate situation continues to favor the US as well. Because of this, I like buying these dips as value and I recognize that although volatile, the market should favor the uptrend in general. If we were to break down, I will simply sit on the sidelines and wait to see when the buyers return. It is not until we clear the 112 level to the downside that I would consider selling, which is something I don’t think’s going to happen in the near term.

Written by FX Empire