USD/JPY Price Forecast – US dollar rallies against Japanese yen after jobs number

The US dollar rallied significantly against the Japanese yen after the jobs number came out in America. By returning to the ¥111 level, it looks as if the market is going to continue to focus on that region, so therefore I think this is a little bit difficult to trade for anything more than about 50 pips. I see resistance at the ¥111.50 level, but I also see support at the ¥110.50 level. I think that’s going to be the key going forward, simply trading back and forth in this pair as it’s going to be difficult to take off to the upside or break down significantly based upon what we have seen on the longer-term charts. At this point, I believe that scalpers will continue to go back and forth to this pair, but then again it offers a great trading environment if you have the ability to sit at your desk.

For a longer-term move, we would need to break the downtrend line of the symmetrical triangle on the weekly charts. If you’re interested in that, I have the weekly analysis uploaded as well, and it clearly shows what we are looking at from a longer-term perspective. This pair will be moving on Sino-American relations more than anything else, and although the US dollar is relatively strong against most other currencies, this has the added inflection of the trade spat as this pair is highly sensitive to it.

USD/JPY Video 10.09.18