Forex Trading: USD/JPY Ahead Of US Unemployment

Withstanding the last few sessions of a global equity penetration of key support levels, the USD/JPY pair has maintained its valuation relative to the prices of these indices, all this after 12+ big figure appreciation in value in just over a month. As more and more economists are predicting an equity bottom in the US (everyday), the fear of intervention by the BOJ (to depreciate the Yen), year-end in Japan at the end of the month, further talks of moving rates from .10% > 0% and rumors of selling at par this mixed bag of information can lead to varying approaches on the pair.

From a technical perspective we look for the pair to have support at the 38.2% retracement level, the 21 day moving average and the 100 day moving average below that, a break of par and the 200 day moving average (not penetrated since 10/08) should lead the pair significantly higher especially if the S&P (^GSPC) is nearing a bear rally.

Friday ’s unemployment report expected to be horrific (-650K, 7.9%) could give the market an unexpected boost if its slightly better or even on the number, taking USD/JPY with it.

Subscribe by RSS Subscribe by Email