USD/JPY analysis (July 08, 2011)

The pair has been showing some strengh as of late but it was short-live once again. We used to see a lack of follow through on the Yen for quite some time which makes this currency difficult to trade.

USD/JPY: daily chart

It is worth noting though that the market has cleared last week high (81,27). From that point, we will consider an extension towards 82,00 particularly if the US employment are as good as expected.

Inversely, a break below yesterday’s low at 80,75 today would expose further weakness on the pair.