The US Dollar is still receiving negative news which are pushing the buck to decline against all major currencies, after we saw the negative figures from the labor market represented in the Non-Farm Payrolls data which came at 138,000 whilst the previous one was 174,000. We are waiting for this week’s news which will likely increase the volatility on the market again ahead of the FOMC meeting about the funds rate decision.
The USD/JPY is still trading inside the price channel in the correction wave - it is now at 110.00, after we sold it at 111.36 as we suggested in our last report with our first target being 110.23. Today we expect it to decline further, especially after it broke the important level 111.07 at the SMA50 which became a strong resistance area for the pair. The MACD indicator is giving us the sell signal too, so it’s expected that the pair will decline to the Fibonacci levels 50% and 61%.
The Next Few Days
After we saw all the signals are still the same since our last report, we would keep our expectations the same too. We would sell the pair at the current levels 110.00 and keep our first target at the support level 108.34, and the second one at the Fibonacci level 106.50.
We have to be careful in trading this week because we have some important news which will create good opportunities like the Funds Rate decision and the retail sales data from the USA, in addition to the Policy Rate from the Bank of Japan on Friday.
