USD/JPY Forecast February 1, 2016, Technical Analysis

The USD/JPY pair broke higher during the course of the day on Friday as we continue to see quite a bit of volatility due to the fact that the Bank of Japan is suggesting that quantitative easing could be coming. With this, we believe that the US/JPY is a pair that we can buy on dips and that we should go much higher. We have no interest in selling, and believe that the 118.50 level is going to be very supportive going forward. Ultimately, we will have to wait and see what happens next, but at the end of the day we do think that the Japanese yen will get punished.