USD/JPY Price Forecast – US Dollar Choppy During Good Friday

The US dollar has gone back and forth during the course of the trading session on Friday, which should not be a huge surprise considering that a huge majority of traders out there would be away from the desk more than anything else. Furthermore, the Non-Farm Payroll numbers came out during the trading session, which of course would have had yet another reason for staying away. That being said, the jobs number came out as adding 916,000 jobs, which of course is very strong.

USD/JPY

The market has been straight up in the air for a while, so a couple of days worth of going back and forth would probably be good. That being said, it looks as if the market is likely to go looking towards the ¥111 level. Which has been resistance previously. All things being equal, think that the market is probably done to have either a pullback or a grind sideways, which is definitely needed. That being said, the market is susceptible to sudden pullbacks, but I would look at those as potential buying opportunities in a market that is obviously very strong. The ¥109 level underneath would be a great area to get long if we get that pullback, but I also recognize that we may not get it.

Keep in mind that the interest rate differential will continue to be a major driver of this market, so having said that I think you need to pay close attention to the 10 year bonds out of both countries, which of course the US offers so much more in the way of yield at this point.