USD/JPY Price Forecast – US dollar falls against yen after bad jobs number

The US dollar fell rather hard against the Japanese yen to slice through major support at 111.50, but we also have the 200 day exponential moving average in the same neighborhood, so there is the possibility that longer-term traders are starting to look at this as a potential buying opportunity. With only 20,000 jobs added last month in the United States, the initial surge was to the downside, but this one could very likely be explained away by traders in New York due to seasonal conditions, some weather that had happened, and of course the fact that it just simply brings the employment situation back to the median average as it had been running a bit hot in America. We already knew that things were slowing down a bit, so the fact that a bad month appeared wasn’t a huge surprise.

USD/JPY Video 11.03.19

That being said, if we can clear the ¥110 level, then we probably fall apart. The ¥112 level above is still significant resistance so keep that in mind as it will be very difficult to clear. If we do, that could open the door to the ¥113.50 level longer-term. The market participants have a lot to think about, but with the cluster of trading in the recent past, it’s going to be very difficult to break down. All things being equal, it’s very likely that we will see buyers step in and pick up this market as we have seen so much resiliency.

Please let us know what you think in the comments below