US dollar sideways against the Japanese yenThe US dollar has been sideways against the Japanese yen for the last several sessions, showing the market to be a bit confused. The 50-day exponential moving average is just above, and that could cause a bit of resistance.
The US dollar continues to chop around against the Japanese yen, which I think will be the theme for most of the week, as we have the jobs numbers coming out of the United States on Friday. I think that the market will continue to be very difficult between now and then, so I would keep my position size relatively small because of the choppy and uncertain conditions we will find ourselves in. There is a massive uptrend line underneath that should continue to offer support, and I believe that we are trying to form some type of bottom. However, if we were to break below the uptrend line, and the 105 level, that should send this market down towards the 100 level. I think that the market breaking down to that level would accompany some bad news, perhaps out of the stock markets.
I believe that the 107.50 level above will be resistance but clearing that level would send this market towards the 110 level. I doubt that’s going to happen between now and the jobs number coming out, and less there is some type of agreement between the United States and China that could keep this market from experiencing some type of trade war. Currently, we await to see what the next step in that argument will be, and it keeps a lot of traders on ads and away from taking major risk. Until then, expect difficult in noisy conditions to continue to be the norm in this pair, and risk assets as well.