USDJPY finished the week strong, closing above channel resistance that extends from the 2016 high at 121.68. I mentioned this pattern last week along with the potential turning point for the US dollar.
After an initial negative reaction to Friday’s non-farm payroll, the USDJPY managed to rally and close the day 120 pips above the session low.
However, as impressive as Friday’s rally was, buyers failed to close the week above the key 104 handle. This level was included in last week’s commentary as one to watch given the successive lows between mid-June and late July.
I maintain the idea that a daily close above 104 is needed to push prices higher toward the July high at 107.50.