USD / JPY analysis: The USD is breaking through the 104 JPY level


The US dollar fell during Thursday's session, dropping below the 104 level. This was a stimulating area as long as there is an outsized number of options that expire at this level during the trading session. Ultimately, the market is probably going to continue falling thanks to the very fact that the US dollar itself is extremely weak. However, it also contains a facet of risk appetite which affects the market also.


 The candlestick shape indicates that we'll see a touch little bit of a bounce down, but ultimately the future trend is certainly negative. At now, I feel if we did break through the low of the session candle, we might dive much deeper. the very fact that the Non-Farm Payrolls report was released during the trading session on Friday makes the notion of volatility during this pair taken without any consideration as long as it's heavily influenced by the non-farm payroll data most of the time. Ultimately, this market was trying to ascertain where to travel next, and now I feel it's shown that the downside remains just about in check. At now, I will be able to take my chances to sell when signs of exhaustion, or possibly collapse, appear.


 To rock bottom, the 103.25 level is going to be a neighborhood that I feel can have a touch of support, and if we break below that the dollar is probably going to start then, given the likelihood of a drop to the 102 level. This was where we had seen great support before. That being the case, I feel it's only a matter of your time before the sellers overwhelm this market as we've been in such a robust downtrend for quite a while now. Lately, we've been going back and forth, but it seems like the market has started a downtrend. With all of the above, I feel it's only a matter of your time before the breakout, so I even have no interest in buying this pair and that I think the actions of the Federal Reserve System and therefore the United States government will still put downward pressure on this pair. Moreover, the Japanese Yen also will be favored thanks to its "safety condition".




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