Risk-off Sentiment Drags USD/JPY Back Below 107.00 Level
pair's early Asian session bump to 107.42 found fresh offers, dragging
the pair back below 107.00 handle to currently trade near session low
The pair got rejected from weekly high level of 107.45 as relentless slide in global stock continued to boost safe-haven demand of the Japanese currency. Investors now turn their focus towards today's key event risk, the US non-farm payrolls data due for release later during the NY session.
The US economy is expected to have added 203,000 new jobs during the month of April. A reading around 200,000 would keep doors open for a Fed rate-hike in June, eventually assisting the greenback to build on to its recent recovery.
Technical levels to watch
From technical perspective, immediate resistance is pegged near 107.45-50 area (weekly highs), followed by resistance near 108.00-108.25 zone (10-day SMA region). A sustained strength above 10-day SMA region now seems to open room for further near-term recovery for the pair.
On the flip side, weakness below 5-day SMA support near 108.65 would point towards resumption of the pair's weakening trend, dragging it immediately towards its recent closing lows support near 106.25-30 area.