Yahoo Finance USD/JPY Price Forecast January 18, 2018, Technical Analysis
The US dollar initially fell against the Japanese yen, but then bounced significantly later in the day. I think at this point, the 61.8% Fibonacci retracement level is probably causing traders to be interested in going long, especially considering that the 110 level is just below. A break above the 111 level is a very bullish sign, sending this market the much higher levels. At that point, I would expect the market to go looking towards the 113 level. However, there is also a significant “floor” in the market underneath that should continue to be a major player in this market.
I think if we do break below the 110 level, we will probably wipe out the entire move, which should send this market down to the 107.50 level underneath. That’s typical Fibonacci trading, as breaking below the 61.8% level should send this market looking to take out everything. Remember, this pair is highly sensitive to risk appetite around the world, so pay attention to stock markets and how they perform. If they do better, typically this pair will rally as well. However, the recent selloff has been rather vicious, and there are multiple shooting stars just above in the middle of that fall. I think that the market will continue to be noisy, but ultimately, we have a serious decision to make rather soon. I suspect, and would be willing to put money on it, that if we do fall towards the bottom of the entire move, there will probably be massive amount of support positions out there, perhaps offer in a nice longer-term opportunity. In the meantime, though, it looks as if we are trying to rally before we even have to ask that question.
USD/JPY Video 18.01.18
This article was originally posted on FX Empire
