Remember that this pair is ultimately a risk sensitive market, and it makes sense that we would struggle a bit after the news came out that the Americans had requested the arrest of a prominent Chinese businesswoman in Canada. This is directly flies in the face of some type of agreement between the two countries, as the Chinese have more of a close nature between large business and the central government. At this point though, I think that the market will very quickly turned to the idea of jobs.
USD/JPY Video 07.12.18
The jobs number will come out at 830 Eastern Standard Time in the United States, and that will move this market rather drastically. Overall, this is a market that seems to have a lot of support underneath, as the uptrend line has been so prominent, and of course the 200 day exponential moving average is just below it. That is another reason to suspect that there should be plenty of buyers underneath. However, if we do break down below the 200 day exponential moving average on a daily close, that could open the door to much lower trading. At that point, I would anticipate that the ¥110 level would be targeted, followed by the ¥108 level. On the upside, I think that the ¥114.50 level will continue to be massive resistance. I believe that short-term traders will continue to pick up this pair on short-term dips, but not much more than that.
This article was originally posted on FX Empire
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