USD/JPY Daily Analysis – January 24, 2018.
The US dollar has fallen again during the trading session on Tuesday, falling from the 111 level. The market looks very likely to test the 110 level below, which should be rather important. It is a large, round, psychologically significant number, as well as the 61.8% Fibonacci retracement level from the recent search higher. It is because of this, that I believe the market is about to make a significant move.
The US dollar has fallen during the trading session on Tuesday, as we continue to see weakness in the greenback. I believe that the market will continue to be very noisy, as the 110 level will obviously offer a lot of support. I believe that the market should continue to be very noisy, and of course very sensitive to risk as it typically is. Pay attention to the stock markets, because if they really, it’s likely that the market will start this pair to rally. The 111 level above is resistance, but I think it’s minor resistance, and breaking above there would not be a huge surprise. However, if we break down below the 110 handle, the market should then go down to the 107.50 level underneath which would be a wipeout of the entire move, going down to the 100% Fibonacci retracement level.
By breaking above the 111 level, the market is more than likely ready to go to the 112 level above, which is the recent highs that we have seen. I believe that there is a lot of noise, and I think that we will continue to suffer moves in both directions. Because of this, we should have plenty of trading opportunities for range bound traders but be aware of those major areas that could get broken, as it would signal the next major move for short-term traders.