The dollar strength continues
The USDJPY is up testing the midpoint of the 2- week trading range. The pair has been confined by a low of 118.318 and a high of 120.353 since March 20, 2015. The midpoint of that range comes in at the 119.336 level. The price is currently testing that level.
Just above are a series of lows from last Wednesday and Thursday at 119.40-45. The 100 and 200 hour MAs come in at 119.48 and 119.50. With the market in a range, if I could create the "bullish below/bearish above" line in the sand it would be 119.336 to 119.50. Sure it is a bit wide, but there simply is a bunch of "stuff" in that range
With the price moving toward this level, look for patient sellers to let the momentum take it up toward the 119.40-119.50 area and look to sell against the MA's. If the price stays below, traders will be looking for a continuation of the move lower started after the weak employment report (including perhaps a delayed reaction in the stock market). If the dynamics are to shrug off the data and have the stocks continue to move higher, then the USDJPY will likely continue through the level, but at least risk will be minimal.