USD/JPY Forex Technical Analysis – Looking for Choppy Trade on Both Sides of 111.452 Pivot

The Dollar/Yen is ticking higher early Thursday after finishing slightly lower the previous session in a volatile trade. The Forex pair rallied early Wednesday on the back of a rise in Treasury yields, but pulled back into the close as Treasury yields retreated from their high.

The Dollar rose against the Japanese Yen following the release of stronger-than-expected private payrolls data at 12:15 GMT, but general nervousness ahead of Friday’s U.S. Non-Farm Payrolls report may have encouraged traders to trim their long positions.

At 02:27 GMT, the USD/JPY is trading 111.487, up 0.056 or +0.05%.

The direction of the USD/JPY is expected to be controlled by the movement in Treasury yields on Thursday, but the range could tighten and volume could drop as traders prepare for Friday’s jobs report.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on September 30.

A trade through 112.078 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 110.826.

The minor range is 112.078 to 110.826. The market is currently straddling its 50% level or pivot at 111.452.

The short-term range is 109.122 to 112.078. If the main trend changes to down then look for a break into its retracement zone at 110.596 to 110.246.

Daily Swing Chart Technical Forecast

The direction of the USD/JPY on Thursday is likely to be determined by trader reaction to the minor pivot at 111.452.

Bullish Scenario

A sustained move over 111.452 will indicate the presence of buyers. Taking out 111.785 will indicate the buying is getting stronger. This could trigger a surge into the main top at 112.078.

Bearish Scenario

A sustained move under 111.452 will signal the presence of sellers with the first target coming in at 111.306. If this level fails as support then look for the selling to possibly extend into the main bottom at 110.826.