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USD/JPY Price Forecast – US Dollar Breaks ¥110 After Jobs Report

Christopher Lewis
·2 min read

The US dollar has rallied during the course of the trading session on Friday, breaking above the 50 day EMA and of course the psychologically important ¥110 level. That is an area that of course is an important area that we have seen tested multiple times in both directions. The market has a significant amount of resistance just above here at the ¥110.75 level, so whether or not we can break above there is a completely different question, and quite frankly would not be surprised at all to see that area fail. Furthermore, if you look at this chart you can make a little bit of an argument for a descending channel as of late.

USD/JPY Video 09.08.21

If we do turn around a break down below the 50 day EMA, then I think we will start granting down towards the 200 day EMA underneath, which is currently sitting at the ¥108.50 level. After all, the area of about one handle above or we are right now significant resistance that extends all the way to the ¥112 level. It is a longer-term area to worry about, so it makes quite a bit of sense that it would take a massive amount of effort to get through. With that being the case, I think it is only a matter of time before we roll over.

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That being said, if the pair does tend to go higher over the longer term, I do not necessarily know that I would be a buyer of this one, but I might be convinced to buy pairs with a bit more alpha, speaking specifically of the GBP/JPY pair, AUD/JPY pair, and the NZD/JPY pair.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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