USD/JPY Price Forecast March 20, 2018, Technical Analysis
The US dollar has rallied a bit against the Japanese yen during early trading on Monday, but the 106.50 level above still looms large. It’s not until we break above that level that I think the market is free to go much higher. If we do break above that level, I think that we go another handle, perhaps even higher than that. The 108 level opens the door to the 110 handle, but obviously it’s going to take a lot of momentum to make that happen. Perhaps if the Federal Reserve suggests this week that there is a 4th interest rate high coming this year, that may put enough upward pressure on the US dollar to finally make it break out.
USD/JPY Video 20.03.18
There seems to be a significant amount of support below at the 105.50 level, so on dips I would be interested in buying, but I would stress that you should keep a small position as there is a lot of uncertainty going into the Federal Reserve meeting. Granted, we already know that there should be an interest rate high, but it comes down to expectations after that. Will there be a total of 3 interest rate hikes this year? Or is the Federal Reserve going to become even more bullish and go higher 4 times? That is what the market is paying attention to more than anything else right now.
This article was originally posted on FX Empire
