USD/JPY Price Forecast – US dollar consolidates against yen awaiting jobs figure

The US dollar has done very little against the Japanese yen during trading on Thursday, as we continue to bounce around between the ¥112 level on the top, and the ¥111.50 level on the bottom. Looking at this chart, it’s obvious that we are simply waiting for some type of catalyst to make a move finely. With the jobs number coming out on Friday, that could very well be what causes the move, after all, the USD/JPY pair tends to move right along with bond yields, which of course are highly influenced by jobs figures. Recently, traders started to think about what the Federal Reserve is going to be able to do, and now it looks very much likely that the Federal Reserve is going to full to the pressure of the market and offer cheap money still.

USD/JPY Video 08.03.19

If that’s the case, it will work against the value of the US dollar with the exception of the Japanese yen. This pair tends to be sensitive to how stock markets behave. If the S&P 500 can break out above the 2820 handle, it’s very likely that this market will continue to go much higher. The alternate scenario of course is that the stock market rolls over and this pair breaks down below the 100 level ¥0.50 level, which could send this market down towards the ¥111 level. All things being equal, I am waiting for a daily close outside of this range to make a longer-term trade.

Please let us know what you think in the comments below