The USD/JPY pair saw bullish and bearish swings following the US jobs report and subsequent market volatility. The decline in US stocks and lower yields may have had an impact, and sellers pushed the price lower.
Technically, today’s low was 141.75, 10 times higher than the low from August 5 (the day the Nikkei fell 12.4%), and buyers have stepped in. The current price is trading at 142.43 on the bounce.
What’s next?
Today’s high just after the jobs report saw the price extend back above the 143.39-143.67 swing zone. The high reached 144.03 but the momentum could not be maintained. However, this area represents a major upside target to reach and continue further momentum.
Conversely, a break below 141.678 would have traders looking to the first day of the calendar year low at 140.80. Below that, the 61.8% retracement of the move up from the January 2023 low comes in at 140.483, followed by the December low at 140.248.
Sellers are more in control of the 143.39 – 143.67 area.
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