FX.co ★ Forecast for USD/JPY on October 8, 2021

USD/JPY

The USD/JPY pair reached the target resistance of 111.67 on Thursday, and this morning it went above Wednesday's high and headed towards the target level of 112.22, driven by the 2.05% growth of the Nikkei 225 stock index. Exit above 112.22 opens the way to the embedded price channel line around 113.08.

This pair's optimism should be treated with caution. Today we will receive data on US employment for September, which may turn out to be worse than forecasted, as weekly claims for unemployment benefits came out worse than expected for three consecutive weeks, which could greatly worsen the expected Non-Farm Employment Change of 490-500,000. If so happens, the price can form a reversal divergence with the Marlin Oscillator, the price will reverse from about 112.22 and the closest target will be to support the embedded price channel line in the 110.68 area.

The price settled above the level of 119.67 on the H4 chart, the Marlin Oscillator is rising, the target level of 112.22 is already close. But what will happen when the price reaches the indicated level will become known only with the release of data on employment in the United States.