USDJPY is currently in a new uptrend but this has yet to be established, as the pair is making an attempt to test the rising trend line on the 4-hour time frame. Stochastic bounced from the oversold zone but headed back down, indicating that there’s enough selling pressure to push for a trend line test.

Take note that the trend line lines up with the 200 SMA, which has served as a support area for the pair on the last correction wave.

A bounce from the 102.00 major psychological support and trend line might lead to a rally up to 103.00 or the previous highs.

Of course this might depend on how the US NFP release turns out. A slower pace of jobs growth is expected while the jobless rate could tick higher, but this might be mostly a result of an improvement in participation rate.

Editor’s Note: Equity investors/traders can use the Currency Shares Japanese Yen Trust (FXY, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the Japanese Yen (USDJPY), minus ETF fee. The fund seeks to reflect the price of the Japanese yen (USDJPY) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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