USD/JPY Volatility Intensifies Ahead of Jobs Report
The US dollar's performance against the Japanese yen is currently volatile, with interest rate differentials driving carry trade positions. As of September 2nd, the pair is trading near a crucial inflection point and the 50-day EMA, which many technical traders are watching closely.
The level of 160 yen appears to be a significant magnet for price action, but rising US interest rates continue to widen carry trade prospects. The upcoming jobs report on Friday will likely have a major impact on the market's direction.
Christopher Lewis, a technical analyst at DailyForex, is hesitant to short the pair due to his negative view of the Japanese yen. He believes that the yen has been severely beaten down and is unlikely to find support outside of intervention. With intervention risks present, Lewis warns that it can only temporarily slow down market trends.