USDJPY poised into US Employment report

• The US Dollar has been the strong global currency against most major currencies since March of this year, despite a corrective setback at the end of April
• US Dollar strength has broadly resumed this week in the wake of a less dovish tone, so de facto more hawkish tone, from Fed Chairman Jerome Powell after the FOMC decision on Wednesday 1^st May.
• This US$ recovery leaves USDJPY more positive in the very short-term, assisted by falling US Treasury prices (so higher yields) as we now focus on the much-watched US Employment report due for release today, Friday 3^rd May.

USDJPY bias higher, post Fed decision

A rebound Wednesday after the Fed through modest resistance at 111.55, to reject a challenge to key 110.81 support from early April and ease the negative tone from the latter April plunge from 112.40 through the up trend line from mid-March, to switch the bias higher Friday.

The mid-April prod above 112.14 was enough to shift the intermediate-term outlook to bullish.

For Today:

• We see an upside bias for 111.67; break here aims for 112.03, maybe 112.40.
• But below 111.02 opens risk down to key 110/81.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 113.71.

• Higher targets would be 114.55 and 115.00.
• What Changes This? Below 110.81 shifts the outlook back to neutral; through 109.66 is needed for a bear theme.

4 Hour USDJPY Chart

Market Chartist

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Steve Miley is the Market Chartist and has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued