FxWirePro: USD/JPY Extends Range Trade, Struggles at the 107 Handle ahead of NFP
- USD/JPY is confined in a 38-pips narrow range, extends subdued trade as markets await crucial NFP data.
- The pair has been recovering from fresh 18-month lows at 105.54 (3rd May), but upside lacks momentum.
- The pair faced rejection just below 107.50 for the third straight session and is struggling at the 107 handle.
- Traders reluctant to take major bets as we head closer towards the US payrolls release and aslo persistent risk-off moods keep the safe-haven demand for the yen underpinned.
- 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.
- Any disappointment could weigh heavily on the USD. Supports for the pair are seen at 106.85 (5-DMA), 106.27 (Apr 29th lows) and then 106.13 (May 2nd lows).
- Resistance on the upside is located at 107.46 (May 4th highs), 108 and 108.20 (Apr 29th highs).
- Fed Bullard earlier today noted it was difficult to conclude whether rate predictions by the Fed or by the markets were more accurate.