USD/JPY Forecast: The USD/JPY Pair Shed Roughly 150 Pips
USD/JPY Current price: 107.67
The USD/JPY pair shed roughly 150 pips with the US employment report release, with the Japanese yen coming back with a vengeance and trading at a fresh 3-week high against its American rival. The ongoing decline in stocks, also down after the announcement, will probably keep the pair under pressure during the upcoming hours, with scope now to retest the 105.50 region during the upcoming week, and even lower. The 1 hour chart shows that the 100 SMA is now crossing below the 200 SMA far above the current level, around 110.00, while the technical indicators head lower vertically, entering oversold territory and distorted, given the sharp decline, but anyway supporting a downward continuation. In the 4 hours chart, the technical indicators have also turned south within oversold territory, whilst the price is far below its moving averages, less distorted and with room for further declines.
Support levels: 107.50 107.10 106.80
Resistance levels: 108.05 108.40 108.90
