USD/JPY Price Forecast – US Dollar Gives Up Early Gains to Form a Less Than Attractive Candlestick

The US dollar has been rallying against the Japanese yen over the last week or so, but as you can see, we have been very choppy as this market continues to hover around the ¥110 level. Furthermore, you should keep in mind that Friday is the Non-Farm Payroll announcement, which of course will have a major influence on what happens next. Nonetheless, this is a market that has been trading in a tight range, and that range has yet to be violated.

USD/JPY Video 02.09.21

To the downside, the ¥109 level is massive support, with the 200 day EMA offering a bit of support as well. With this being the case, I think that will be your “floor the market” at the moment and breaking down below that would obviously be a major turn of events. On the other hand, to the upside the ¥110.75 level is resistance, followed by ¥111.50, and most certainly by ¥112, as those have all shown themselves to have plenty of supply.

When you look at the 50 day EMA, you can see that the market has been going sideways, and I just do not see any real desire for the markets to move anytime soon, so therefore expect more of the same of the next several days. This is especially true as market participants will continue to wait on the jobs number to place a position out there. Because of this, you will have to be very patient with this market, and perhaps focus on something along the lines of a 15 minute chart more than anything else.

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