USD/JPY Price Forecast – US Dollar Pulls Back After Jobs Number

The US dollar has pulled back a bit against the Japanese yen from the ¥110 level, which is of course a large, round, psychologically significant figure. That is an area that will continue to attract a lot of attention obviously, but if we can break out above it then it allows the market looking towards the ¥111 level.

USD/JPY Video 07.06.21

In the short term, I think that we are trying to find support underneath, and we probably will. I would be especially interested in the 50 day EMA, so the market may have a little further to go to the downside before buyers jump back in. That being said, if we get some type of supportive action underneath, I would be more than willing to go to the upside. However, if we were to break down below the 50 day EMA then it could open up the possibility to reach down towards the ¥108 level.

I do not have any interest in shorting this market, but I do recognize that it had been overbought. This is especially true as we start to see the market sell off so drastically after the figure, so with that in mind I think we are simply going to take a little bit of a breather after the nice run higher, so with that being the case I think what we are simply best served by is sitting on the sidelines and letting the market tell us when it is time to get involved. It does not tell us this currently.

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