USD/JPY Forecast October 27, 2016, Technical Analysis

The USD/JPY pair rallied during the course of the session on Wednesday, but the 105 level below continues offer a significant amount of resistance. If we can break above the 105 level, the market could very well reach towards the 107 handle. However, there is the 100-day exponential moving average just below and that should offer dynamic support. I also believe that the 103 level is essentially the “floor” at this point, so I have no interest in selling. I believe that the market continues to see quite a bit of bullish pressure underneath, and as a result I can only go long.