USDJPY technical analysis: 22^th January -27^th January

In the last trading week, the USDJPY pair dropped initially but the pair managed to recover in the final part of that last trading week. The pair dropped to 112.56 level and the pair rebounded from this critical support level. For the next trading week, the initial bias for this currency pair is bullish. We might see a test of 115.62 resistance level this resistance level is also the 50 % Fibonacci level (swing high 15^th December 2016 to sewing low 17th January 2017) .which might restrict the upside trend. If pair manages to break this resistance level then we might see another bullish run in the currency market. The pair might hit the next resistance level at 116.32 which is the 61.8% Fibonacci level for this currency pair. If we look at the chart there is not much resistance after 116.32 level so if buyer manage to break this level we might see a strong bluish run in the market. Many professional traders’ looks forward to buying this pair if pair manages to breach the 61.8 Fibonacci level then The price might touch the top price of this currency pair which is at 118.60 level.

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In the last year, the dollar bulls have shown an immense amount of strength in the global market and pushed the dollar higher against its all major rivals. The green bucks gained its first bullish momentum in the market during the U.S presidential election held on 8th November 2016.Mr. Trump surprised the whole world by becoming the new U.S president and he gave the dollar its first boost by stating that they are going to increase the fiscal spending in the very beginning of the next year. Most importantly he also stated that they are going to initiate tax cut policy to give a better standard of life to their citizen. Such an optimistic statement from the newly elected president create extreme positive consumer confident in the U.S consumers. The long anticipated rate hike decision was finally implemented by the FED in their last FOMC meeting minute as they hike their interest rate on the basis of 25 points. The green bucks became broadly stronger against its major rivals in the forex market. However, most of the investors are thinking that the dollar will lose its strength in the near future.

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