USD/JPY Price Forecast March 28, 2018, Technical Analysis

The US dollar has rallied a bit during the trading session on Tuesday, as we continue the bullish move from Monday. The market has calmed down significantly, as this is a “risk on/risk off” currency pair and makes sense that we are seeing buyers. I think that the 105 level will continue to be important, and I think that we could continue to go towards the 110 handle. I believe that the market will continue to react to what’s going on in the stock market, so pay attention to any significant trouble over there, as it could send the market lower.

The alternate scenario of course that could move this market rather drastically would be the potential of trade wars between the United States and China. The headlines crossing the wires of course could move this market rather quickly, keeping in mind that this pair falls every time it looks likely that we are closer to the trade war. Alternately, if it seems that things calm down it’s likely that we will continue to go higher, perhaps reaching towards the 106 handle.

If we make a fresh, new low, then the market probably reaches down to the 100 level over the longer term. I believe that we are at a very significant point in this currency pair, as there was a massive uptrend line that coincided roughly with the 105 level. I believe that overall the markets will try to find some type of bottom, but we need a lot of the concerns around the world to settle down before it can.

Written by FX Empire