USD/JPY Price Forecast – US Dollar Hovers Against Japanese Yen

The US dollar has gone back and forth during the trading session on Thursday as we are awaiting the jobs number on Friday. With this being the case, I anticipate that it will be very choppy in general, and therefore a market that is struggling to find direction in the short term. That being said, when the Friday session comes, it will be a very volatile and choppy scenario, because this pair tends to be one of the most volatile during the figures.

USD/JPY Video 08.10.21

At this point, the ¥112.50 level above continues to be an area of interest, and I think you need to pay close attention to that region, because if it gets broken above that could send this market in more of a “buy-and-hold” direction. However, we could pull back from here to go looking towards the 50 day EMA underneath, which is sitting just above the ¥110 level. Because of this, the market is likely to continue to see more of a range bound behavior over the next several weeks, as we are trying to figure out where we are going next.

Interest rate differentials between the United States and Japan will continue to drive this market as well, so pay close attention to the 10 year yield in America and of course the 10 year yield in the JGB market. All things being equal, I believe that this is a market that will be very noisy over the next couple of days and eventually decide on nothing new in the short term. However, you can use this pair as a relative strength gauge for the Japanese yen itself.

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