Change Dollar Yen: Technical evolution in view of the non-farm payroll


The dollar exchange rate yen ahead of the nonfarm employment data (NFP) US does not stop the losses. Can the non-farm payroll to the rejuvenation of the USD / JPY and to bring the listing on the 112.70 area?

Let’s see what lies ahead from a technical point of view and vital for the week just begun.

Change Dollar Yen: Technical Analysis Daily April 3
During the last sessions the change dollar yen has slumped touching a low level of 110.11 on March 27, 2017. The maximum was instead marked on the level of 115.50 on March 10, 2017. The technical configuration remains bearish on USD / JPY . After breaking an important support zone 111.30 area, the change is returned in this area now become resistance, testing the level corresponding to 38.2% of the Fibonacci retracements of the aforementioned bearish movement.

Possible therefore a pullback on 112.18 level that would push the change to record a further failure with a first target placed in 107.90 area. The bearish scenario presented above would be put into question only with a clear break of the bearish channel that we see on the graph h4 (shown in the second graph) and in the area of seat resistance level 111.50 (red line).

The macro of the events of this week involves two key events for the dollar yen exchange: the publication of the March of the FOMC meeting minutes scheduled Wednesday at 20:00 hours to be followed by non-farm payroll on Friday at 14:30. Where the publication of minutes investors fail to achieve a deduced clear signals about the timing of an increase in interest rates by the Fed remains plausible that the exchange continues its descent toward the south, as is apparent from reading graphic described previously.

In terms of non-farm payroll employment analysts expect a deterioration in nonfarm this month compared to the previous with an expectation equal to 180K against 235K in February. In this macroeconomic scenario, in which the uncertainty helps to strengthen the Japanese yen fueling bearish movements in the dollar exchange rate yen, only one actual data on non-farm payroll better than expected, would bring the dollar exchange rate yen to find a new bullish momentum and the strength to break the level of place 115.50 resistance area, which would push the prices to come back again in the 112.70 area.


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