- The Friday session has seen the US dollar pullback just a bit against the Japanese yen again.
- Just like we have seen all week, the buyers have stepped in to pick it up. That being said, it isn't exactly as if it's a huge move.
- It's just the market trying to sort out whether or not we can finally break above the crucial 158 yen level.
The 158 yen level is an area that's been like a brick wall over the last couple of weeks, but we also have to keep in mind the past couple of weeks have been all about the holidays. Now there is market memory to be found at the 158 yen level, so it all ties in quite easily. I would be surprised to see this market go somewhat sideways, more of a buy on the dip attitude, but sideways overall between now and the jobs number next Friday.
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The Jobs Number and Its Importance
That will be your first piece of major information that will possibly drive the US dollar higher in general. The PMI numbers came out during the trading session a little better than anticipated for the dollar. So that's part of what the recovery was, but really, I don't even think that was that big of a deal. I think this all comes down to people wanting to continue to own the greenback.
Even if we were to fall from here, the 155 yen level is probably a short-term floor, especially now that the 50-day EMA is running toward it. If we break above the 158 yen level, then the 160 yen level, and then the 161.50 yen level, both come into focus. I do think that eventually happens, and I like the idea of buying dips, because after all, you get paid via swap at the end of every day to hold this USD/JPY pair.
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