USD/JPY is higher by 1.4% today after a much stronger than expected ISM figure and better than expected weekly unemployment claims. The pair is currently trading around 99.40, and is sitting near several key resistance areas ahead of tomorrow’s major jobs number out of the US.
USD/JPY used the 100 day EMA as a launching point for higher these past few days, but now the rally is encountering some significant trend-line and Fibonacci resistance. Tomorrow’s job figures could very well set the trend on USD/JPY for the next few weeks. A break above 100 could exposure a dramatic move higher toward the previous highs of 103.78, while a break below that 100 day EMA (in green) could open up a move toward the 200 day EMA, which is currently sitting at 93.73. Either way, keep a close eye on USD/JPY during tomorrow’s release; it could be a big one.
Written by: Liam McMahon, Currency Strategist – GlobalFxClub.com