USD/JPY Price Forecast – US dollar continues to press resistance
The US dollar has rallied a bit during the trading session on Thursday, reaching towards the ¥111.50 level. That is an area that extends all the way to the ¥112 level, and therefore it will be very interesting to see whether or not the market can break out above that 50 pip range. If it does, that could send this market much higher, at least to the ¥113.50 level from what my work tells me.
USD/JPY Video 05.04.19
To the other side, if we break down below the lows of the Wednesday candle, then we probably go looking towards the ¥110.75 level, and then possibly even down to the ¥110 level. That being the case, it’s not until we get the jobs figure that we can put serious money to work, because quite frankly the chance for volatility is extraordinarily high. This pair tends to be very sensitive to jobs figures, so therefore we need to be very cautious and recognize that we need to give the market at least a couple of hours after that announcement. With that being the case, there isn’t much to do between now and then. However, we need to recognize how the market reacts to those figures once the machines get done trading and traders start to digest the announcement.
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In fact, it’s probably best to wait until Monday morning to make the trade and see where we are. However, for those of you who want to trade a little quicker, if you wait until noon in New York quite often you will see what the market is going to end up doing anyway.
Please let us know what you think in the comments below