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USD/JPY Price Forecast – US Dollar Continues to Grind Higher Against Japanese Yen

The US dollar has rallied again during the trading session on Friday as the jobs never came out much better than anticipated. With that being the case, the market is likely to continue to see the ¥110 level offer significant resistance. Ultimately, the market will continue to be attracted to these large, round, psychologically significant figures, and for what it is worth it will be interesting to see how the market closes for the week, because the ¥110 level is massive as far as a psychological standpoint is concerned, and of course historical precedents in both directions.

USD/JPY Video 08.06.20

With this being the case, the market is likely to see some resistance between here and there, so I look at the idea of shorting near that area as one that could set up for a nice selling opportunity. If we break above there, then obviously we have further to go, and the most obvious target at that point would be ¥111. Either way, this pair does tend to get very volatile at times when there are huge shifts in the market, like we are getting now.

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All things being equal, the jobs number, although being better than expected, still are very horrific and it is likely that it is only a matter of time before the Japanese yen looks attractive again, thereby causing more or less a chance for a continuation of the overall range that the market has been in for some time. Yes, the last few days have been extraordinarily explosive, but we still have a lot of noise above that more than likely will be felt relatively soon.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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