USD/JPY Ranging Around 107.00 Level
pair on Wednesday moved within a narrow trading range, circling around
107.00 handle, amid thin liquidity on the back of a bank holiday in
Japan and EU.
The pair on Wednesday retreated from high of 107.45 but managed to bounce back of day's through level of 106.25. The pair currently seems to consolidate near 107.00 level, just above 5-day SMA region. Given the thin market conditions the pair seems unlikely to break through Wednesday's 120-pip range ahead of the key monthly US jobs data on Friday.
Technical levels to watch
On the immediate downside, 5-day SMA region near 106.67-65 area is likely to restrict immediate downside. This is closely followed by yesterday's lower level support near 106.25 level.
Meanwhile on the upside, 107.45-50 area remains key level to watch for any further recovery for the pair. A clear strength above 107.50 resistance seems to open room for an immediate upside towards its next major resistance at 10-day SMA near 108.70 level.