Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
USD/JPY Setup: Bullish Breakout Contingent on NFP Data

USD/JPY Setup: Bullish Breakout Contingent on NFP Data

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • NFP data to condition USD/JPY performance
  • USD positioning shows net shorts decreasing

USD/JPY has been playing it safe over the last few weeks as the pair has lacked the bullish momentum other USD pairs have seen post-FOMC. The Fed-induced rally on Wednesday the 16th was quickly reversed against the Japanese Yen, bringing the pair back down to its current ascending trendline support.

The lack of conviction in the bullish breakout is keeping the pair capped at its recent yearly high (110.97) despite positive technical signals. This is allowing momentum to build and I would expect USD/JPY to break higher in the coming days with the help of a fundamental catalyst. That would come in the form of better than expected NFP jobs data, which would serve to confirm the price pressures in the economy that would prompt the Federal Reserve to act earlier than expected, seeing a renewed bullish push in the US Dollar.

Advertisement

Positioning in the US Dollar has been extremely bearish in the last few months as Covid trades were being unwound taking the US Dollar basket to its lowest level in three years. This has allowed an easy inflow of new long positions supporting the US Dollar, reducing the net shorts in the most recent week.

USD/JPY Daily Chart

USD/JPY Setup: Bullish Breakout Contingent on NFP Data

USD Positioning

USD/JPY Setup: Bullish Breakout Contingent on NFP Data

Source: Refinitiv

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES