USD/JPY forecast for the week of July 31, 2017, Technical Analysis
The USD/JPY pair initially rally during the week, but as the Federal Reserve was a bit more dovish than anticipated this week, the US dollar fell. The 110 level below looks to be supportive, and with this being the case it’s likely that we will find some type of support. Ultimately, this should be an opportunity for value hunters if we get some type of supportive candle. If we can break above the top of the weekly candle, that would be bullish as well. If we break down below the hammer from 6 weeks ago, then the market could plunge quite a bit farther from here. Ultimately, this is a market that I think is going to continue to be very choppy and sideways, so I think that any different here will probably be somewhat shallow.
Short-term trading
I think it’s probably best to look at this as a market that is traded from the short-term, and that’s about it. Ultimately, this is a market that I think continues to be very difficult to deal with from a longer-term perspective, so I look at it more as a range bound type of market on short-term time frames. The pair is well supported underneath, but there’s no catalyst to take off to the upside yet. If the Federal Reserve search hiking rates, or sounds bullish at all, I will more than likely turn this market around completely. Expect volatility this fall, but this month tends to be very quiet, so we may simply go sideways over the next couple of weeks.
USD/JPY Video 31.7.17
This article was originally posted on FX Empire