USD/JPY Recovers Losses in Sync with Nikkei, Awaits NFP
The bulls were rescued by easing risk-off conditions, allowing a tepid-bounce in the USD/JPY pair back towards daily highs.
USD/JPY supported at 107.00
The pair continues to move back and forth in early European trades, confined in a 25-pips narrow range and now attempts a minor-recovery, tracking a minor pullback in the Japanese stocks, with the benchmark Nikkei 225 index closing down -0.25% versus -0.95% seen previously. At the moment, USD/JPY recovers to 107.25, still down -0.6% on the day.
Moreover, fresh bids caught by the US dollar against its six major peers also aid the recovery in USD/JPY from just ahead of 107 barrier. Meanwhile markets now remain focused on the upcoming crucial US labour market report, including the payrolls and wage price data, for fresh take on USD/JPY.
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, while a 0.3% gain is expected in the hourly wages.
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).