- The US dollar retreated again against the Japanese yen in Friday’s session.
- As we’ve seen all week, buyers jumped in to snap it up. That being said, it’s not exactly like it’s a big move.
- The market is just trying to sort out whether or not we can finally break the 158 yen level.
The 158 yen level is an area that has been like a brick wall for the past few weeks, but we also have to remember that the past few weeks have been all about the holidays. There is now a market memory that can be found at the 158 yen level, so everything is easily connected. I would be surprised to see this market go sideways, more like buying on the downside, but overall sideways between now and next Friday’s jobs number.
Number of jobs and its importance
That will be your first significant piece of information that may push the US dollar higher in general. PMI numbers came out during the trading session a little better than expected for the dollar. So that’s part of the recovery, but actually, I don’t even think it was a big deal. I think this all comes down to people wanting to continue to own the dollar.
Even if we fall from here, the ¥155 level is likely to be a near-term threshold, especially now that the 50-day EMA is hurtling towards it. If we break above the ¥158 level, then the ¥160 level and then the ¥161.50 level both come into focus. I think that eventually happens, and I like the idea of buying the dips, because at the end of the day, at the end of each day, you get paid by the exchange to hold this USD/JPY pair.
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