The U.S. dollar made some fairly significant gains against its Japanese counterpart in trading today, after the pair fell to a 7-month low last night. Investors began selling off the yen after some early morning gains in the Tokyo stock market induced some modest risk taking. Coinciding with the dollar's gains, gold prices also began to go up following yesterday's steep drop. Gold fell well over 3000 pips yesterday following a series of particularly disappointing U.S. news events.
Traders should be weary of any gains being made by the dollar at the moment. Any risk taking among investors will likely be tempered ahead of the all-important U.S. Non-Farm Employment Change report at 12:30 GMT. This report always creates volatility and presents traders with an excellent opportunity to make quick profits. Analysts are forecasting negative job growth this month in the U.S. If true, downward pressure on the dollar will likely occur. Gains for the yen and possibly the euro would also likely occur.