USD/JPY Price Forecast – US dollar breaks major level before turning around

The US dollar broke a major resistance level during the trading session on Thursday but turned around as the ¥109 level has offered too much in the way of resistance to continue going higher. With that in mind, it’s very likely that this market will continue to struggle into the jobs figure.
Christopher Lewis
USD/JPY daily chart, August 02, 2019

The US dollar rallied initially against the Japanese yen during the trading session on Thursday, but as you can see ran into a buzz saw of trouble above the ¥109 level. This is an area that has been resistance, so the fact that we would pull back from there isn’t a huge surprise, especially considering that we have such an important figure coming out in the form of jobs in America. Ultimately, I believe that this market will be able to break above there, but obviously we have some business to take care of ahead of that. Overall, if we were to close above the ¥109 level, it’s very likely that we will then go looking towards the ¥109.70 level that I had been talking about.

USD/JPY Video 02.08.19

To the downside, if we were to break down below the 50 day EMA which is pictured in red on the chart, then I think the market could very well drop towards the ¥108 level. Quite frankly, it’s very possible that we see both of those levels hit during the day on Friday as well, depending on what the jobs number tells us. Now that the Federal Reserve is out of the way, we can start to focus on raw data again which of course will make a lot of people happy. In the meantime, expect a lot of choppiness but pay attention to those levels that I just mentioned as they will be your guideposts as to where to go next.

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