USD/JPY Forecast – US Dollar Gets Crushed to end The Week

US Dollar vs Japanese Yen Technical Analysis

The U.S. dollar initially tried to recover a bit during the trading session on Friday but has been absolutely crushed against the Japanese yen as the jobs report added 114,000 jobs to the payrolls in America last month, instead of the anticipated 175,000. Because of this, the market looks horrible at this point in time. And of course, the Bank of Japan may have finally broke the back of this market. It is a bit early to announce that, but we certainly have seen a lot of technical damage done, and I think it is going to be difficult to turn things around easily.

If you’ve been following me for a while, you know, I said that the 150 yen level was crucial and that is nothing but a distant memory at this point as we have dropped three handles in the last several hours. With that being said, the market continues to see a lot of downward pressure and I think now that traders are starting to panic about the economy in the United States, they’re starting to run into the direction of the Japanese yen for safety.

I’m not quite ready to short this pair yet because number one, I wouldn’t want to chase this move. But what I would do is wait for some type of bounce and signs of exhaustion, perhaps, to think about shorting. If we were to turn around and break above the 200 day EMA at the 152 yen level, then it would be a recovery. But at this point in time, this is a market that just looks absolutely horrible.

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