Despite overnight strength in the USD, the USD/JPY is still trying and failing at the 113.00 resistance level. This was our key level to focus on in yesterdays trade and the fact that it has held up gives me even more confidence. When a forex pair is getting pushed higher by one side, yet it can’t break through makes me think that there is some underlying weakness. As such I want to keep selling at 113.00 until proven otherwise.

Of course, as the week goes on we have some key drivers for the USD, which include non-farm payrolls. I won’t be holding into that release, but I do think that in the short-term having it hanging over our heads might help this resistance level continue to hold up.

USD/JPY – 240 min Chart.