USD/JPY Midday Technical Analysis November 1The US dollar has been very choppy against the Japanese yen during early trading on Thursday, as we continue to see a lot of noise. However, I think this market is probably going to stay in this range mainly because of what happens tomorrow.
The US dollar has done very little against the Japanese yen during trading on Thursday, which of course is not a huge surprise considering that the jobs number comes out in the United States on Friday. This is one of the most sensitive pairs to that announcement, so it makes sense that people will be looking to put a lot of money into the marketplace ahead of that major event. Longer-term, it certainly looks as if the market is probably going to continue to go higher, but the question is whether or not we can take off from here or if we can pull back before finding buyers. I think at this point we very well could get a slight dip, but that should be thought of as a buying opportunity.
USD/JPY Midday Video 01.11.18
There will be a knee-jerk reaction after the announcement, but quite frankly the Federal Reserve has made it clear that they are looking to raise rates, and that should continue to be what you pay attention to. As long as the rates are going to go higher, and by all means they look like they are, there will be an underlying bullish pressure to this market, even when the Japanese yen strengthens across the board. That would make this pair “less bad” in selloffs then perhaps a currency pair like the AUD/JPY. The US dollar is very strong, but of course the yen gets a bit of a bit due to safety. That would explain the volatility. The ¥114.50 level above remains massive resistance.