USD/JPY, USD/CAD and USD/CHF Forecasts – US Dollar Noisy Ahead of Tomorrow’s NFP

USD/JPY Technical Analysis

The US dollar initially found itself pretty negative during the early part of the trading session on Thursday, but you can see that we have bounced a little bit. We’ll just have to wait and see whether or not that continues. The 160-yen level is an area that has been a bit of a barrier.

If we were to break above the 160-yen level, the market then opens up the possibility of a move to the 160.50 level. Clearing that area could send the market much higher, perhaps mainly due to the fact that we would be breaking a 1990 high, and at that point I think the floodgates open.

If we fall from here, I’m looking for a bounce to start buying again, especially if it’s closer to the 50-day EMA. Keep in mind, Friday will be the non-farm payroll announcement, and this pair is particularly sensitive to it.

USD/CAD Technical Analysis

The US dollar looks like it’s finally running out of steam against the Canadian dollar. I think it’s time to get out of any trades that you might be in here. We are at the top of the range for the year.

A bit of a pullback from here makes a certain amount of sense. We’ll have to watch that 10-year yield to see how it behaves in America. It is pretty stagnant at the moment, but the jobs report during the session tomorrow will obviously give it some momentum one way or the other, so that’s worth watching.

And of course, we have to keep in mind that the Canadian employment numbers come out at the same time. Expect a lot of volatility.

USD/CHF Technical Analysis

The US dollar has fallen against the Swiss franc. It looks, though, like we’re just in the same range we’ve been in for a while, with the 200-day EMA offering resistance and the 0.78 level underneath offering support.

As this thing falls, I’ll be looking for an opportunity to buy it again, collect that swap, and then possibly ride it back up to the 0.7933 area.

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