USD/JPY Price Forecast March 15, 2018, Technical Analysis

The US dollar initially fell against the Japanese yen during trading on Wednesday, reaching down towards the 106.25 level, an area that has been supportive over the last several days. This area was previous resistance, so that is not much of a surprise. Pay attention the stock markets, they will more than likely dictate which direction this pair goes. If stock markets rally, that could be good for the USD/JPY pair, as it could send this market looking towards the 107.50 level. The Japanese yen of course is the world’s premier safety currency, so if we take as far as risk assets are concerned, that will almost certainly drive money to the downside here.

I recognize the 107.50 level as a major barrier, and if we can clear that area I think that we could be looking at 108, followed by 110 afterwards. A breakdown below the 106 level opens the door to the 105 level below, which I see as a massive support barrier. Ultimately, if we were to break down below there it would be a very negative sign and could send this pair looking towards the 100 handle, something that would be a very negative move indeed. That would probably coincide with major issues in the stock markets, and perhaps even the commodity markets. I do like this pair longer-term but recognize that there’s a lot of volatility and noise to work through between now and a sustainable uptrend. Short-term “buy on the dips” strategies are probably going to work out best.

Written by FX Empire