USD/JPY Forecast November 18, 2016, Technical Analysis

The USD/JPY pair rallied during the day on Thursday, testing the top of the shooting star from the Wednesday session. Because of this, it’s likely that the market will continue to try to break out to the upside, as this is a very bullish move. If we do break above the top of the shooting star we will then be testing the 110 level. I still believe that we are bit overbought at this point so I do feel much more comfortable buying pullbacks that show signs of support. Nonetheless, if we break above the 110 level, the US dollar should continue to strengthen further.