Japanese Yen Cross Pick 03.05.10
Following up with the long USD/JPY recommendation from earlier this week, the pair extended the rally from the previous day and crossed back above the 20-Day SMA at 89.90, but the exchange rate jumped higher following the U.S. non-farm payrolls report, which triggered the entry I had at 89.51. The dollar-yen advance to a high of 90.27 following the enhanced payrolls report, and I will look to maintain the target at 90.85 going into the week ahead, but will move up the stop to cost as price action failed to hold above the 100-Day SMA at 90.13. Nevertheless, as the USD/JPY maintains the downward trending channel from earlier this year, I expect the pair to test the upper-bounds of its recent range following the sharp decline from the end of February, and may continue to range-trade the pair going forward unless we see a major breakout over the near-term.
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