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Christopher Lewis

The US dollar has gone back and forth during the trading session on Thursday, as we continue to see a lot of noise in this pair. It is not a huge surprise as the jobs number came out and the USD/JPY pair tends to be sensitive to those figures. Ultimately, this is a market that should be looked upon as one that is basically range bound, so as we get a little bit too far to one direction or the other, I am still looking at the ¥107.50 level. It is almost like using the Bollinger Band indicator. Furthermore, the 200 day EMA offered significant resistance during the previous session, so I think that shows that it is a massive barrier.

USD/JPY Video 03.07.20

To the downside, the ¥160 level has been massive support, forming a bit of a double bottom previously. This suggests that we are going to continue to find buyers in that area, and as a result it is likely that the market will find massive support there. If we were to break down below there, then it is possible that we could break down another 100 pips. At this point though, it looks as if the market just does not know what to do with itself, and this may be what we see for a bulk of the summer as we are waiting to see whether or not the coronavirus/economic situation gets better or worse.

For a look at all of today’s economic events, check out our economic calendar.

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