USD/JPY forecast for the week of December 25, 2017, Technical Analysis

TARIFFS LATEST

The US dollar has rallied a bit during the week, reaching towards the 113.50 level above. If we can break above there, the market should continue to go towards the 115 handle. This market continues to be noisy, but I think the buyers are going to be attracted to this market in general. · FX Empire

Christopher Lewis

Updated Fri, Dec 22, 2017, 11:01 PM

The US dollar has initially fallen during the week, but turned around to form a bullish candle. I think that the market will continue to go higher, as the 112 level has been a massive “floor” in the market, and I think that will continue to be the case. As interest rates rise in the United States, it makes sense of the US dollar rallied against the Japanese yen, reaching towards the 115 level again. A break above there becomes a “buy-and-hold” market just waiting to happen, as the market will be broken out and show signs of a larger move. I think that the market continues to find plenty of reasons to go higher, as not only will this market focus on the interest rate differential, but also the risk appetite traders around the world, as this pair tends to follow stock markets overall. I like to follow the S&P 500 when trading this market, so I think given enough time we should see this market rally as the S&P 500 is very bullish.

If we were to break down below the 112 handle, I think the market then goes to the 111-level underneath. The markets continue to be supported at several levels, so I have no interest in shorting going forward. I believe the 2018 is going to be a very good year for this pair, once we break out of the year-long consolidation.