USD/JPY: Yen in Demand Amid Risk-Off, 107 Tested

USD/JPY: Yen in Demand Amid Risk-Off, 107 Tested

6 May 2016, 04:42
Roberto Jacobs
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USD/JPY: Yen in Demand Amid Risk-Off, 107 Tested

The USD/JPY pair found support just ahead of 107 handle and now makes minor-recovery attempts as the JPY bulls jumped back on the bids amid poor risk sentiment across Asia.

USD/JPY fails once again near 107.50

Having faced rejection just below 107.50 for the third straight session, the dollar-yen pair edges lower in the Asian morning, with the persistent risk-off moods favouring the yen as a safe-haven.

Moreover, the greenback retreats against its major peers after the recent strength, as focus turns towards the key risk event for today, the US payrolls data due later in the NY session. At the time of writing, USD/JPY trades near daily lows around 107.10., down -0.16% on the day, while Japan’s Nikkei drops -0.80%, while the Chinese indices are down 0.20% to 1%.

The US private sector is expected to have created 200,000 new jobs in April, slightly less compared to the figure of 215,000 booked a month ago.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 107.50 (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 106.94/90 (daily S1/ 5-DMA) and below that at 106.71 (1h 100-SMA).


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