FxWirePro: USD/JPY Trades a Narrow Range, Holds Gains Above the 107 Handle
- USD/JPY has been trading a thin range in the Asian session, with day's highs at 107.20 and lows at 106.88.
- The pair has been recovering from fresh 18-month lows at 105.54 (3rd May), but upside lacks momentum.
- Disappointing China April Caixin Service PMI which came in at 51.8 (prior 52.2) & Composite at 50.8 (prior 51.3) likely to keep risk-off alive.
- Markets nervous as we head closer towards the US payrolls release and aslo weaker global equities also keep the safe-haven demand for the yen underpinned.
- Supports for the pair are seen at 106.67 (5-DMA), 106.27 (Apr 29th lows) and then 106.13 (May 2nd lows).
- Resistance on the upside is located at 107.46 (May 4th highs), 108 and 108.20 (Apr 29th highs).
- Techs are inconclusive we would prefer to remain on the sidelines for now.
- Focus will be on U.S. weekly jobless claims and building permits data due later today.
- Besides, Fed official Bullard’s speech will be closely heard for fresh insights on the US interest rates outlook.