USD/JPY Forecast August 9, 2017, Technical Analysis

The US dollar initially fell during the session on Tuesday, dropping down to the 110.25 handle. However, we turned around to find plenty of support and saw an impulsive move to the upside after the Jolts announcement in the United States suggest that there are over 6 million jobs available. That should have the central bank stepping on the brakes a bit, raising interest rates. That gives the US dollar a bit of strength, and I believe it will show itself in this market as this pair tends to be very sensitive to the overall jobs picture in the United States of course the interest rate differential.

More interest rate hikes

I believe that this gives us an idea that the Federal Reserve will in fact start to raise interest rates again, and that should give us an idea as to where the US dollar should go, to the upside. I don’t have any interest in trying to short this market, least not until we break well below the 110 level, which now starts to look very much like a bottom from where I stand. I believe that were to go looking towards the 112.50 level above, but it’s the take a while to get there. Buying dips should continue to be the best way to trade this market as we see plenty of reasons to go higher.

USD/JPY Video 09.8.17