US Dollar Returns to Resistance, NFP on Deck: EUR/USD, USD/JPY

US Dollar, EUR/USD, USD/JPY Price Analysis

  • US Dollar strength has come roaring back this week.
  • This sets the stage for tomorrow’s NFP report.
  • Both EUR/USD and USD/JPY have put in moves to key zones on the back of this week’s USD price action.

US Dollar Bulls Take Over… Again

US Dollar strength is starting to become a trend in 2020 trade…

Despite last week’s post-FOMC sell-off, US Dollar bulls came back into the matter this week and so far, it’s been a one-way show. The USD has pushed up to yet another zone of key resistance, this time around the 98.33 level that was in-play in November and early-December. This zone had similarly set resistance in April and May of last year; and with Non-Farm Payrolls now less than 24 hours away, it seems the stage has been set in the US Dollar’s technical backdrop. This equates to themes in both EUR/USD and USD/JPY which remain of interest ahead of tomorrow’s jobs reports.

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US Dollar Daily Chart

us dollar price chart

Chart prepared by James Stanley; USD, DXY on Tradingview

EUR/USD Re-Tests Key Support Zone

Given that onslaught of USD-strength, EUR/USD has seen price action revert right back down to a big zone of support that’s been holding the lows for the past three-and-a-half months. Given the increasing frequency of tests, this zone may not hold for much longer and this could become an interesting setup for those looking for a continuation of USD-strength around tomorrow’s NFP. Downside breakout potential exists, with next supports located around 1.0955 followed by the 1.0900 psychological level.


Data provided by

of clients are net long.

of clients are net short.

Change in Longs Shorts OI
Daily 20% -6% 10%
Weekly -6% 5% -2%

EUR/USD Eight-Hour Price Chart

eurusd eight hour price chart

Chart prepared by James Stanley; EURUSD on Tradingview

USD/JPY Re-Tests Key Resistance

Another area that’s shown significant movement around this recent USD-theme has been USD/JPY. Last week saw the pair taken-over by both USD-weakness and JPY-strength as fears of the spreading coronavirus took global markets by hold. That threat has dissipated a bit so far this week, and in response USD/JPY has reversed much of that prior bearish move.


Data provided by

of clients are net long.

of clients are net short.

Change in Longs Shorts OI
Daily -6% 23% 7%
Weekly -15% 11% -3%

But – given the longer-term technical backdrop, along with the potential for change in both USD and fear-based themes around coronavirus, the short-side of the pair can remain as attractive as long as price action remains subdued below the January high. This keeps the door open for short-side USD-scenarios in the pair ahead of and around tomorrow’s NFP report.

USDJPY Daily Price Chart

usdjpy daily price chart

Chart prepared by James Stanley; USDJPY on Tradingview

— Written by James Stanley, Strategist for

Contact and follow James on Twitter: @JStanleyFX

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