The USD/JPY pair rose during the session on Wednesday, slicing above the 98.50 level during the day. We are still short of the 99 handle, and that is what I need to see broken to the upside in order to start buying this market again. Because of this, I am on the sidelines at the moment, but I do recognize the fact that this move has been rather strong. On top of that, you could make a case for a little bit of a "W” been formed at the moment, and therefore a break above the 99 handle truly it's interesting as it would break the top of the middle hump.
That being said, there are also other things to consider when trading this pair. The very first thing you think about as the Bank of Japan and the fact that they are doing everything they can to weaken the value of the Yen. Because of this, it makes sense that as long as that's the case, this pair can only fall so far. If we somehow get strong numbers out of United States as far as employment is concerned, this pair will absolutely skyrocket in value. In fact, this will be the only market you want to trade for the short term after that announcement.
Jobs numbers come out next week
The jobs numbers come out next week, and that of course will be a main driver of this market. That's because the Federal Reserve will have to be careful as to whether or not they can taper off of quantitative easing due to the employment picture in the United States. If it picks up, and get stronger than I think that this market could go much higher. On the other hand, if it's a live report yet again, this market might actually fall. I expect the regular see a lot of choppiness over the next several months, but ultimately this pair does breakout the upside if we can ever get above the 100 handle again, this market could really take off.
