The USD/JPY pair rose on Friday after the positive job report and the U.S unemployment rate fell by a tenth to 4.3%, matching May as the lowest level of unemployment in 16 years. It declined despite an expansion in the labor force. In our last report about the USD/JPY we recommended selling the pair and it hit our first target at 110.23. It still has not hit the second one, so we will take another look at the chart again to get a new chance and make a profit.
The USD/JPY pair is trading now in a downward price channel in the short term and inside a triangle pattern in the medium term. Tthe prices touched it before the US Non-Farm payroll report and then bounced back to reach the higher limit of the channel and are trading now below the SMA.
The Next Few Days
After we see the prices back after they touched the lower limit of the triangle we will be looking for a buy opportunity once the pair breaks the price channel up around 110.80. We should keep our target at 111.95 in case the pair is still trading above 110.17. If the prices break this level downward, we will sell the pair and keep our target at 109.33, and then 108.34.
This week does not offer much news from the USA such as CPI and PPI data, so the markets may have low volatility this week, but we have to be careful about any uncalendared news which may change the market direction.
