USD/JPY Forecast May 5, 2016, Technical Analysis

The USD/JPY pair initially fell during the day on Wednesday but found enough support near the 106 level to turn things back around and form a hammer. The hammer of course is a bullish sign, and it looks as if the market is trying to build enough of a base to turn things back around. However, there is a lot of noise between here and the 110 level, so do not think that a move higher is going to be easy. With that being said though, it does look like a bounce is very likely at this point in time.