The USD/JPY pair initially tried to rally during the course of the day on Friday, but the 120 level offered enough resistance to turn the market back around. With it being Nonfarm Payroll Friday, this pair tends to be very volatile as there is a certain risk appetite component to it. On top of that, the number was in exactly stellar as it came out about half of what it was anticipated to be. With that, the pair sold off as it typically does, but you can see that the 119 level offered support. With that, I feel that this market will more than likely find some type of a supportive barrier that eventually the market will start buying again. The supportive candles in this region will be buying opportunities as far as I can see. Luckily, we stopped where we did so it appears that even if we continue to see a bit of bearish pressure, it’s more than likely going to only invite more buying.
Longer-term buying opportunities
I still believe that there are a lot of longer-term buying opportunities in this particular currency pair. After all, although we did have a bad jobs number on Friday, the truth is that it was only one bad number. On top of that, the Bank of Japan will do everything he can to keep the value of the Yen down, as it continues offer very loose monetary policy. The Federal Reserve of course has step away from quantitative easing, but that’s are now that the interest-rate hike that people feel is coming will more than likely be later than anticipated. Because of this, it may decelerate the move higher, but I do think eventually we are going much higher. A supportive candle in this area is reason for me to start buying, and if we can get above the highs from earlier this week, I would be a buyer as well, as we should then head to the hundred and 22 level, and then the 125 level.
