USD/JPY Wobbles Near 107.00 Ahead of Payrolls
The Japanese yen is posting moderate gains vs. its American peer at the end of the week, sending USD/JPY to the 107.00 neighbourhood ahead of NFP.
USD/JPY attention to US labour market
The
pair is now reverting a positive streak since Monday following a softer
note in the US dollar while markets remain cautious ahead of US Non-farm Payrolls
due later in the NA session. Expectations point to the US economy to
have added more than 200K jobs during last month and the unemployment
rate to remain at 5%.
USD – tracked by the US Dollar Index - is
losing ground following three consecutive advances, after yesterday’s
bull run lost upside momentum near the 94.00 handle and despite comments
by FOMC governors on Thursday have pointed to a ‘live’ Fed meeting in
June.
USD/JPY levels to watch
As of
writing the pair is retreating 0.31% at 106.93 facing the immediate
support at 105.52 (2016 low May 3) followed by 105.18 (monthly low
Oct.2014) and then 101.97 (monthly low Aug.7 2014). On the other hand, a
break above 108.79 (20-day sma) would expose 111.09 (55-day sma) and
finally 111.92 (high Apr.28).
