The US dollar initially tried to rally against the Japanese yen during the trading session on Friday, which of course featured the jobs number. At this point, the market looks very likely to reenter the area, but obviously it is an area that has been rather noisy, and therefore could cause quite a bit of trouble for traders.
USD/JPY Video 09.09.19
Looking at the chart, there are a couple of long wicks above that continue to show signs of resistance. The 50 day EMA slicing through that area of course is another reason to think that perhaps the sellers are starting to step in. Simply put, this pair is a barometer of risk appetite and it’s likely that we will continue to see a lot of erratic behavior due to the fact that there are a multitude of issues out there that could cause risk appetite to wax and wane. The US/China trade situation has gotten better over the last couple of days, but quite frankly nothing has truly changed. Because of this, it’s likely that the pair will continue to be choppy to say the least. Now that we have the jobs number out of the way, it’s likely that we will eventually get some type of move, but the initial reaction was a bit muted, as professional traders will start to add volume to the market on Monday. If we do break to the upside, the ¥108 level will be the initial target. Underneath, the ¥105 level is massive support.
This article was originally posted on FX Empire
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