The USD/JPY pair rose during the session on Tuesday, as the support that I anticipated below did in fact come back into play. This market has been consolidating for some time now, and as a result I think that we are looking at the summer range now. The 101 level on the bottom is massively supportive, and probably extends all the way down to the 100 level. On the other hand, I believe that the 103 level above is massively resistant. A close above the 103 level would of course change everything as it should signal the next leg higher. I believe we will eventually get this, but right now there doesn’t seem to be any catalyst to make that move happen.

On the other hand, the Bank of Japan will continue to try to work against the Japanese yen, and with the slow-moving summer markets, I find it difficult to think that this market is going to break down drastically. That’s exactly what it would take at this point in time, a drastic move down in order to break the support. In fact, I would expect the Bank of Japan to get involved below the 100 level.

Nonfarm payroll numbers come out on Thursday.

The nonfarm payroll numbers come out on Thursday, and that announcement tends to be one that this market follows rather extensively. With this, I feel that a strong jobs number will more than likely push this pair higher, but quite frankly I think that the simple technical support will do that as well. It really comes down to the jobs number as to how quickly it happens. Nonetheless, I think that the market has decided that this pair is going to stay in this area between now and August.

If we do get above the 103 level though, I believe that the 105 level will be tested next. If we break above the 105 level, we could head to the 110 level, an area that I thought this pair was heading towards this year. We don’t know that it’s going to happen between now and December 31, but certainly that should be the direction that we aim for.


Related Articles
  1. Active Trading

    Market Efficiency Basics

    Market efficiency theory states that a stock’s price will fully reflect all available and relevant information at any given time.
  2. Mutual Funds & ETFs

    5 Low Fee Lord Abbett Mutual Funds

    Learn about five low expense ratio Lord Abbett mutual funds and the key characteristics about each mutual fund's top holdings, returns and total assets.
  3. Economics

    The History of Stock Exchanges

    Stock exchanges began with countries who sailed east in the 1600s, braving pirates and bad weather to find goods they could trade back home.
  4. Investing

    Credit Suisse Losses: Indicating Bigger Trouble?

    The banking sector's dependence on the energy sector is just one of many factors that have experts worried about the banking industry's performance.
  5. Stock Analysis

    The Top 4 Large Cap Restaurant Stocks for 2016 (SBUX, MCD)

    Learn about the top four large-cap restaurant stocks for 2016 and economic factors that could impact the industry over the next year.
  6. Personal Finance

    Zika Virus: Latest Advice on Staying Safe

    Zika has hit the U.S. Here’s the most recent update on what’s known about the virus, how it spreads, who’s at highest risk and how to avoid it.
  7. Economics

    How Warren Buffett Made Berkshire A Winner

    Berkshire Fine Spinning Associated and Hathaway Manufacturing Company merged in 1955 to form Berkshire Hathaway.
  8. Mutual Funds & ETFs

    Top 10 Most Traded Leveraged ETFs (UVXY, SDS)

    Discover how leveraged ETFs work and why they are popular among traders. Learn about the 10 most traded leveraged ETF in the marketplace today.
  9. Taxes

    Why People Renounce Their U.S Citizenship

    This year, the highest number of Americans ever took the irrevocable step of giving up their citizenship. Here's why.
  10. Investing Basics

    The Importance of Commodity Pricing in Understanding Inflation

    Commodity prices are believed to be a leading indicator of inflation, but does it always hold?
  1. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  2. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  3. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  4. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  5. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
  6. What is comparative advantage?

    Comparative advantage is an economic law that demonstrates the ways in which protectionism (mercantilism, at the time it ... Read Full Answer >>
Trading Center