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USDJPY Usually a Key Focus Through the US Employment Report

Technical Analysis

Video Analysis

On Friday 5th June at 8.30 ET the US releases the May Employment report. This usually has a significant impact on the USDJPY spot currency rate and given the recent strong breakout rally, we see bias for an upside extension through this data event.

USDJPY Bullish trend re-energized, but correction risk

Further cautious, but resilient consolidation since the bearish outside Tuesday pattern, back from a probe above 125.00, but reluctance to surrender even modest support now established at 123.76/73.

Having pushed above the high from 2007 at 124.15 to a new 12 year high, we see recent activity as corrective in nature and still see the May breakout rally intact for further upside into early June.

For Today:

  • We see an upside bias for 124.68; break here aims for 125.05 125.45.
  • But below 123.76/73 opens risk down to 123.47/42; break here aims for 122.76.

Short/ Intermediate-term Outlook – Upside Risks:

  • We see a positive tone with the bullish threat to 125.81, the 2002 peak.
  • Above here targets 129.08 and 130.00.

What Changes This? Below 121.53 eases bull risks; through 120.64 signals a neutral tone, only shifting negative below 118.86.

Momentum: The 8-day RSI, short-term momentum is rising and has scope to go still higher this week.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


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