The US dollar has initially tried to rally against the Japanese yen during trading on Wednesday but gave back some of the gains at the 200 day EMA. At this point, the market is likely to continue drafting lower and reaching towards the ¥106 level. That being said, it will be interesting to see how it behaves during the trading session on Thursday. Ultimately, the Thursday session features the jobs number, so that is likely to move this market in one direction or another. Ultimately, I think that this could be a very quick mover during the trading session, and especially true if the numbers missed the guesstimate.
USD/JPY Video 02.07.20
To the downside, this market could very well go down to the ¥106 level. That is an area where we have seen a bit of a “double bottom”, so it would be a strong candidate for buyers to return. The market is trying to break down below the 50 day EMA, and that is of course an interesting sign. The market has failed between the 50 and the 200 day EMA, which is quite common for buyers or sellers to pay close attention to. The fact that we fail there is not a huge surprise, so it is likely that we could see a bit of follow-through to the downside. One thing is for sure, this is a market that seems to be struggling to find a longer-term direction. In the meantime, we have to look at the market is one that is essentially range bound.
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This article was originally posted on FX Empire
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