The U.S. dollar and the Japanese yen have aggressively oscillated since the 20th of January 2016, within a bullish formation between the range of 115.93 and 117.87 respectively.
The buyers placed tremendously strong upside pressures whereas the sellers were simply spectators.
The price is now slightly below today’s major pivot point zone the 118.08 area.
Probable Scenario
In the scenario where the USDJPY stabilizes close to the 118.08 area, the price could escalate as high as 118.72, Fibonacci 50.0%, and 119.41, Fibonacci 61.8%.
The stochastic oscillator also indicates that the pair has greater chances to retrace and escalate.
Alternative Scenario
In contrast, should the sellers take the lead and force the pair below the 117.25 area the price could drop as low as 115.93.
Today’s Major Announcements
- The Chicago Fed National Activity Index (Dec), the Markit Manufacturing PMI (Jan), the CB Leading Indicator (MoM) (Dec), and the Baker Hughes US Oil Rig Count releases are expected to have a medium impact on the U.S. dollar
- There are no any major releases that could influence the Japanese yen
Synopsis
- Probable trend (Bullish):118.08
- Bullish take profit targets:118.72, 119.41
- Stop loss target:117.25
- Alternative trend (Bearish): 117.25
- Bearish take profit target: 115.93