Risk-off Sentiment Drags USD/JPY Back Below 107.00 Level
The USD/JPY
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
near 106.90.
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.
