US dollar go sideways against the Japanese yen as we test resistance

The US dollar was relatively quiet against the Japanese yen during the trading session on Wednesday, as we are sitting just below the 110 level. This is an area that not only is psychologically important, but it is structurally important. I believe that if we can break above the 110 level, the market should then go to the 112.50 level after that. Alternately, if we fall from here I think that we will probably go looking towards the 109-level underneath for support. A breakdown below there opens the door to the 108 handle. I believe that the “floor” of the market is closer to the 107.50 level, so I think that pullbacks between here and there will eventually offer value the people are willing to take advantage of.

However, if the jobs number is horrible, that could be reason enough to selloff in this market. I believe that the dips will continue to offer value, and eventually we will get enough volume to break out to the upside. If the jobs number is strong, that will send even more money in that direction, and we will break through rather quickly. Over the next 24 hours though, I think it is going to be difficult to put a lot of faith in the moves that could occur. We have been in an uptrend for some time, and I think we’re about to make an even bigger move.