The USDJPY has been mostly oscillating since the 12^th of January 2016 within an aggressive bullish and bearish formation between the range of 117.19 and 118.38 respectively.

Both the buyers and the sellers have placed strong pressures in their attempts of taking control over the pair’s price.

The price is now oscillating slightly above, almost touching, the 117.75 zone which is today’s major pivot point area, and below the 117.99 level a critical bullish zone.

Probable Scenario

In the condition where the pair stabilizes close to the 117.75 area, the price could be forced to decline to lower zones such as the 117.19 Fibonacci’s 23.6%, and 116.67 Fibonacci’s 0.0%.

The stochastic oscillator also confirms that the price has greater chances to retrace and decline at the 80 level.

Alternative Scenario

Alternatively, should the buyers take the lead and boost the price above the 117.99 area Fibonacci’s 61.8%the pair could appreciate as high as 118.81 Fibonacci’s 100.0%.

Today’s Major Announcements

• The Initial Jobless Claims (Jan 8) and the Continuing Jobless Claims (Jan 1) announcements are expected to have a medium impact on the U.S. dollar
• The Foreign bond investment (Jan 8) and the Foreign investment in Japan stocks (Jan 8) releases are expected to have a medium impact on the Japanese yen

Synopsis

• Probable trend (Bearish):117.75
• Bearish take profit targets:117.19, 116.67
• Stop loss target:117.99
• Alternative trend (Bullish): 117.99

Bullish take profit target: 118.81