USD/JPY Deflates from 107.20 Amid Negative Equities
The USD/JPY
pair fades a spike from daily tops and now reverts to 107 handle, as
subdued trading on the Asian equities provides respite to the JPY bulls
somewhat.
USD/JPY well above 5-DMA at 106.70
The
major stalls its recovery mode from multi-month lows and recedes gains
over the last hour as a renewed bout of risk-aversion appear to hit the
markets as nervousness mounts as we head closer towards the US payrolls
release.
Moreover, weaker global equities also keep the
safe-haven demand for the yen underpinned, therefore, capping the upside
in the USD/JPY pair. At the time of writing, USD/JPY trades at 107.08,
easing-off 107.21 session highs, and up +0.06% on the day, while
Australia’s ASX 200 now drops -0.07% and the Chinese equities are down
around 0.25%.
Looking ahead, the EUR calendar remains data-dry as
most major European markets are closed on account of a public holiday.
Hence, focus now remains on the US jobless claims and Fed speak for
further incentives on the major.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 107.36/50
(May 4 high/ psychological levels). A break above the last, the major
could test 108/108.20 (Apr 29 High). While to the downside, the
immediate support is seen at 106.70/67 (5-DMA/ 1h 100-SMA) and below
that at 106 (round number).
