USD/JPY shoots higher during the trading session on Thursday

The US dollar has rocketed against the yen on Friday, as it looks like there’s more of a “risk on” attitude overall, but the 107.50 level should offer a significant resistance area. If we can break above there, and I think we are probably going to, we should extend gains towards the 110 handle. Remember that today is the nonfarm payroll Friday announcement though, and that quite often has a lot of influence on where this pair goes next. The better the jobs number, the higher it tends to go. The opposite of course is true, so keep that in mind and if the jobs number is poor, this market probably pulls back towards the 106.50 level.

This is going to be a “risk on/risk off” type of scenario, so keep that in mind, and only add once the market has proven itself to you. I think that the market has plenty of support underneath, so unless it’s something catastrophic, or we get some type of negative news out of the negotiations between the United States and China, the market will more than likely find plenty of reasons to bounce. We have been forming a bit of a bottoming pattern in general for some time, so now it looks like that’s starting to come to fruition. I believe that there is a hard “floor” near the 105 handle, as it coincides not only with a large, round, psychologically significant number, but it is also where the daily trend line crosses.