The US dollar has initially tried to rally during the trading session on Thursday but ran into a bit of a headwind in the form of the 50 day EMA. We then turned around to reach below the ¥107 level, an area that extends down about 50 pips to the ¥106.50 level. As the market awaits the jobs number on Friday, it’s very likely that it will be relatively quiet going into that figure, and then very reactive. This pair tends to be highly sensitive to that economic report, and at this point the better the jobs number is, the better this pair will probably do.
USD/JPY Video 04.10.19
A break above and daily close above the 50 day EMA has the market reaching towards the ¥108.50 level, an area that features the 200 day EMA as well. Ultimately, this is a market that continues to see a lot of choppiness and that is probably going to be the way forward. Beyond that, the longer-term trend is most certainly to the downside so it’s likely that we will eventually go looking to test the ¥105 level, but obviously we have some support to chew through in the meantime. A short-term bounce, signs of exhaustion, and perhaps a catalyst to break down is the most likely of scenarios for my experience trading this currency pair. With that, expect volatility but eventually we should get some type of resolution to the choppy and sideways trade conditions.
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This article was originally posted on FX Empire
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