USD/JPY: make it or break it

by Admin

The USD/JPY extended its gains to 97.18 today, pulling back 100 pips early Europe, and trading below its opening price. Despite what technical readings may offer, the pair will trade accordingly to US employment data today. With a report in line with expectations, the most likely scenario is little reaction to data, and a continuation of pre news intraday trend, which means the pair may continue correcting lower, with 95.80 as immediate support.

An outstandingly positive report should trigger a yen sell off, sending the pair back higher, with 96.70 and 97.20 then at sight, while a quite negative reading will only exacerbate current bearish tone and send the pair towards 95.20/50 price zone.

Weekly close will be key for the long term trend, as if above former high of 96.70, there’s scope for a test of the 100.00 level over the upcoming days, while if below 95.50, risk turns to the downside towards 94.10/20 price zone.

View Live Chart for USD/JPY