USD/JPY Price Forecast – US Dollar Drifts Lower After Jobs Number

The US dollar has been all over the place during the trading session on Friday as the jobs number came out missing by over 500,000 jobs. With that in mind, the market looks as if it is still stuck in the same range and part of the reason might be the fact that we are in one of the quietest times of the year as the traders are away at holiday more than anything else. That being said, as we get deeper into the month of September there will almost certainly be much more in the way of volume.

USD/JPY Video 06.09.21

Looking at this chart, the 50 day EMA sits just at the top of the candlestick as well, as the ¥110 level is just above there. If we can break above that, then it is likely that we could go looking towards the ¥110.75. That is an area that has been massive resistance, and therefore I think it is going to be difficult to break above there. If we did, then it opens up the possibility of a move towards the ¥112 level.

On the other side of the equation, if we were to break down below the ¥109 level, we would challenge the 200 day EMA which of course will attract a lot of attention in and of itself. Because of this, I think what we are seeing is the market trying to figure out where to go for a bigger move, but clearly, we do not have the ability to make that decision right now. With this, I think we are still stuck in the same back-and-forth action that we have been in for several months.

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