US Dollar Stabilizes Against the Japanese Yen

US Dollar vs Japanese Yen Technical Analysis

The US dollar has gone back and forth against the Japanese yen during the trading session on Thursday at very elevated levels as we await the jobs figure on Friday in the United States. The market will continue to be a bit overbought, but the jobs number could have a major influence on where we go long term. Because of this, I believe that it is more likely than not only a matter of time before we have to make a bigger decision, and once we do a lot could be at play.

On the upside, the ¥125 level is an area that has been important more than once, so it should be respected. That is an area where if you look at the longer-term chart, you can clearly see there has been a lot of supply. On the downside, the ¥120 level will almost certainly cause a little bit of a reaction, if for no other reason than the fact that it is a large, round, psychologically significant figure.

Interest rate differential continues to drive this market, so it will be the bond market reaction to the jobs number that moves this market more than anything else. While it is a very bullish market, it certainly could use a bit of a pullback in order to make it a healthier market. Financial markets cannot go straight up in the air forever, and that might be the lesson here. However, that does not necessarily mean that I would be looking to sell this market quite yet, I need to see some type of weekly signal to make me believe that the possibility.

USD/JPY Price Forecast Video 01.04.22

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