USDJPY Daily Forecast Oct 05 2018

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USDJPY: Faces Corrective Pullback Threats!

With the pair failing to continue higher to the 114.88 levels, rejected at the 114.54 levels, the risk has been shifted to the downside with caution! support comes at the 113.35 levels, a halt is likely and buyers may try to dominate the market, however; below 113.35 will suggest large corrective pullback to the 112.55 levels, further down, support comes at the 112.00 levels.

On the upside, to prevent a return to the downside, a sustained breakout – daily closing – above 114.27 levels if seen, it will aim the 114.88 levels, a halt is very likely but a break would open 115.50, further upside, resistance comes at the 116.35 levels.

Conclusion: The USDJPY sees corrective threats below the 114.88 levels, above that level will have large bullish implications towards 116.35/117.43 levels.

Support: 113.35, 112.55, 112.00, 111.63

Resistance: 114.27, 114.88, 115.50, 116.34

blankKey data/events which may affect EURUSD today:

The United States will publish 2 reports on the status of jobs over the past month, excluding the farming industry today at 12:30 GMT.

1- Nonfarm Payrolls (Sep), market analysts expect a fall to 185K, from 201K a month earlier, note that a higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

2- Unemployment Rate (Sep), market analysts expect a fall to 3.8%, from 3.9% in the preceding month. Note that a higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

How both reports will affect EURUSD today?!

we have 3 scenarios:

Scenario # 1: If both reports are positive, the USD will rise, How this scenario will affect the market?!!

The pair will challenge the 114.27/114.88 levels, beyond 114.88 us unlikely today, but if manages to breach, next target would be 115.50. Expected range: (113:35/114.88).

Scenario # 2: If both reports are negative, the USD will fall, How this scenario will affect the market?!!

The pair will decline to 113.35 levels, further decline is likely to the 112.55 levels, any upside move will be limited by 114.27 levels. Expected range: (112.55/114.27).

Scenario # 3: One report is positive and the other is negative?!! The USD will consolidate with an upside bias, mostly the market won’t make a big move.

Expected range: (113.35/114.27)…

You can follow U.S jobs report in real time from here:

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