USD/JPY Forecast January 28, 2016, Technical Analysis

The USD/JPY pair broke higher during the course of the day on Wednesday, clearing the 118.50 level yet again. We believe that a break above the top of the range during the course of the session from Wednesday should signal that this market is ready to go much higher. At that point, we anticipate that the first target will be the one 20.50 level, and then perhaps even higher than that. We believe pullbacks will continue to be supportive, and as a result we will buy supportive candles at lower levels as well.