According to the technical analysis of the pair: On the daily timeframe chart, the US dollar is moving against the yen, USD / JPY, in the path of its new ascending channel, which is the closest to testing the 106.00 resistance level, which we have identified as the true starting point for bulls in controlling the performance to test higher resistance levels. On the downside, the bears will regain control of the performance by moving the currency pair towards and below the support level of 104.25. All in all, I would still prefer to buy the pair from every downside. The pair's trading and the close out outlook will depend on the results of today's US jobs report and investors íreaction to it.
The US dollar against the yen is taking a strong position ahead of the announcement of the important US jobs numbers on Friday, which will determine the form of the weekly closing of the dollar, which has so far been in the winning position. Investors rushed to the dollar as a safe haven, despite the slow pace of the United States' plans to vaccinate against Corona, coinciding with the United States issuing global figures of injuries and deaths with the epidemic. I often recommend buying the currency pair from every downward level and that buying is better than thinking about selling, especially with its stability below the support 103.00, except for the pair closest to testing the resistance level 106.00, which I mentioned is the first stage in changing the general trend to an upside, according to the performance on the daily time frame chart . As I mentioned, the pair will continue to maintain its gains until the US jobs numbers are released.
The bears will not return to dominate the performance without moving below 104.00 support again. Today's currency pair will be affected by whether investors take risks or not, as well as the reaction from the announcement of the weekly jobless claims, non-agricultural productivity and US factory orders.
The improvement in US job numbers was better than expected, which contributed to the continuation of the gains in the US dollar against the Japanese yen, which is stabilizing around the resistance level of 105.20 at the time of writing the analysis, its highest in nearly three months. Despite the latest figures, according to the ADP reading, to measure the change in the number of new US jobs in the non-agricultural sector. Double US employment for six months in a row. And there are still nearly 10 million jobs lost since the emergence of the Coronavirus. And this week, the Congressional Budget Office predicted that US employment will not return to its pre-pandemic level until 2024.