Outlook for USD/JPY Strategy Amid Strengthening Dollar Weakness and Yen Strength
![Masayuki Sakamoto Masayuki Sakamoto](https://c.mql5.com/avatar/2021/6/60B91315-7A95.png)
Outlook for USD/JPY Strategy Amid Strengthening Dollar Weakness and Yen Strength
At the start of the Tokyo market this week, dollar weakness and yen strength became more pronounced. There is speculation that the U.S. Department of Labor’s annual revision, scheduled for the 21st, could lead to a significant downward revision in employment numbers, which is contributing to dollar selling and yen buying. This rumor has been circulating for some time, adding to the downward pressure on USD/JPY. Last week’s selling pressure just below the 150 yen level suggests that the upside for USD/JPY remains limited in the near term.
As we approach the Jackson Hole Symposium later this week, there is increasing caution in the market, making USD/JPY more susceptible to selling. Given the recent light market activity, selling could trigger further declines, warranting a cautious approach.
EUR/USD and Cross-Yen Trends
EUR/USD has also risen to around 1.1050, reflecting the broader trend of dollar weakness. The dollar index has declined to near 102.00, highlighting the dollar's overall weakness.
In cross-yen pairs, yen strength is prevailing, with risk aversion driving the market. Selling is expected on rebounds, but the Tokyo market’s reaction may have been somewhat exaggerated, suggesting the possibility of a temporary correction.
Strategy
Considering the current market environment, a strategy focused on continued dollar selling remains valid. Particular attention should be paid to USD/JPY, where short-term position adjustments and heightened caution ahead of risk events could lead to a prevailing selling trend.