USD/JPY Price Forecast November 23, 2017, Technical Analysis

The US dollar fell below the 112 level again against the Japanese yen, breaking below the previous low. That of course is a significantly negative signal, telling me that the pair is probably going to go back towards the bottom of the consolidation area that has been a long-term factor in this pair, the 108 handle. At this point, I believe that every time we make a fresh, new low, it’s time to start selling again and in small increments as we can build up a larger position to the downside. I think that the 108 level will be difficult to crack to the downside though, so it’s more than likely going to be an issue where it offers an opportunity between now and the end of the year, as traders are starting to worry about tax reform and if it will ever happen.
However, once we get to the 108 level, I’d be more than willing to jump into this market with 2 hands and serve buying the US dollar again because of the massive support that we have seen there. Alternately, if we were to turn around and break above the 112.70 level, then I think that the market could find more bullish pressure, perhaps reaching towards the 114.50 level again, which of course has been massive resistance. I think that if the US Congress does something with the tax bill though, that is very likely to happen. I do think that eventually they get something done, but right now it looks as if more stagnation is to be expected. With this in mind, I believe that the downside is probably the more likely of the 2 scenarios that I see.