USD/JPY Price Forecast December 26, 2017, Technical Analysis

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The US dollar went sideways against the Japanese yen during the trading session, as we continue to hang about the 113.25 level. The market is going to struggle in general, as volume just isn’t there. · FX Empire

Christopher Lewis

Updated Fri, Dec 22, 2017, 10:44 PM

The US dollar went sideways against the Japanese yen during the trading session on Friday, as traders start to focus on Christmas, and not so much currencies. Days like this are normally dominated by companies that need to make financial transactions, as the speculators are gone. As the US dollar continues to grind around the 113.25 level, I think that we will probably pull back a bit to build up enough momentum to finally break out to the upside. While we could get a negative move, I think that will only offer value the people are looking for, giving us an opportunity to take advantage of value, as the US dollar should continue to climb longer-term as the interest rates in America should go higher, while the Bank of Japan is on the sidelines and keeping their monetary policies very loose.

Longer-term, if we can break above the 115 handle, the market should go much higher and into being more of a “buy-and-hold” scenario. In general, I think that’s what happens over the longer term, but in the meantime, we will have to build up the necessary momentum to make that move. The 112-level underneath is a massive support barrier, so I think that is only a matter of time before the buyers will return near that area. If we were to break down below the 112 level, I think at that point we would go looking towards the 111-level underneath, which is even more supportive. I am a “buy only” trader in this market, but I recognize that I can pick up value underneath.