USD/JPY Forecast January 3, 2017, Technical Analysis

The US dollar rose against the Japanese yen initially, but pulled back towards the end of the day as liquidity wasn’t there. Ultimately, the market should continue to go higher and I believe that the target is the 120 handle. The 115 level below is massively supportive, and essentially a “floor” in this market. I have no interest whatsoever in selling this market, but I do recognize that it will be rather choppy on the way higher. The support runs all the way down to at least the 112 handle, so having said that I believe we are seeing a longer-term trend change.