USD/JPY Price Forecast – US Dollar Continues To Test Major Resistance Barrier

The US dollar has rallied a bit during the trading session on Thursday to touch the ¥110 region but has pulled back since then. This makes quite a bit of sense as it is an area that has caused multiple issues in the past, although with the jobs number coming out on Friday it’s likely that we could get enough momentum to start to break out to the upside. Ultimately, this is a market that should react very strongly to those jobs figures and rise rapidly if the jobs number is better than anticipated. Furthermore, if the jobs number is worse than anticipated, this market will more than likely fall as is typically the response.

USD/JPY Video 07.02.20

I do like the idea of buying dips, and it’s not a huge surprise that we have pulled back from the psychologically and structurally significant figure. Because of this, I believe that it is only a matter of time before buyers return, taking advantage of value as it appears. This pair does tend to move right along with the stock markets, showing signs of risk appetite in that sense. Furthermore, the 50 day EMA underneath is starting to offer support again, so I think at this point any downside move is somewhat limited. In fact, if the market does fall apart after the jobs figure, I would be looking to pick up value closer to the ¥109 level if it does in fact offer such an opportunity. Nonetheless, I think we go higher regardless.

Please let us know what you think in the comments below