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Fan Yang

USD/JPY Looks Juicy if a Little bit Lower

USD/JPY has been trading sideways for most of 2017. Let's take a look at the daily chart.

USD/JPY Daily Chart


(click to enlarge)

Support Below:
- As we can see on the daily chart, price has been trading sideways and is approaching the 2017 range support area. 
- There appears to be some bearish bias so maybe we should anticipate support lower than the previous 2017 low. 
Key Pivot Area:
- Below 108, USD/JPY would enter a key pivot area. A bullish market should probably find support above that 105.60 pivot.
- Here's the thing. There are 3 more Fed meetings, and the market is expecting 2 to be hikes. 
- IF the Fed sticks to plan, with 2 rate hikes or even more planned for 2018, there could be upside to at least 114. 
- Otherwise, if the market feels the Fed will not follow through and therefore leave policies more loose, the upside might be 
be limited to the 109 area. We have the first of last three Fed meetings in about a month.  
- Downside should probably be limited to 105.60 for now. But as price gets near 106 or even 107, I think bulls will be licking their chops.
- I think this area around 106 offers a good reward to risk even if upside is limited to 109. 
- So just a couple hundred pips lower from here (and USD/JPY would look very attractive. 

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