The US dollar has gone back and forth against the Japanese yen during trading on Wednesday as we continue to see this market hang around the ¥109.50 level. This is an area where we could see a bit more selling pressure, and the fact that we have the jobs number coming out on Friday will probably continue to cause quite a bit of noise in this market. With that being the case, I think it is only a matter of time before we have to make a bigger move, and the most obvious target above would probably be near the ¥110 level. The ¥110 level has been resistive previously, but we have even broken above there to go towards the ¥111 level, which is my longer-term target if we continue to see upward pressure.
USD/JPY Video 06.05.21
That being said, I do not know that we get a huge move between now and Friday when we get the jobs number. Quite frankly, I think it is going to be difficult to make a big move between now and then, and with that being said I think what we are looking at is a lot of back and forth choppy behavior between now and then. With that in mind, I am somewhat neutral on this pair for the next couple of days, but I recognize that the 50 day EMA underneath could be a target if we do get a selloff, as it should offer support. On the other hand, if we break above the highs of the Monday session, then we will probably go looking towards ¥110, but that is not a very big move.
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