USD/JPY Could be Eyeing 108.00 Level
The USD/JPY
pair found support at 5-day SMA near 107.10-08 to move past 107.50
level and now seems headed to test 10-day SMA resistance near 107.90-92
area.
Friday's disappointment from NFP print did drag the pair
below 107.00 handle to 106.45, but in-line with expected hourly wage
growth assisted the pair back above 107.00 level. US average hourly wage
growth of 0.3% was seen supportive for lifting inflation in the US,
which kept doors open for a Fed rate-hike during 2016.
On H1
chart, the pair is oscillating within a short-term ascending
trend-channel and is rebounding from channel support near 106.45 level,
tested on Friday. Hence, from current levels the pair seems more likely
to hold its bid tone and extend its appreciating move.
Technical levels to watch
From
current levels, the pair seems more likely to extend its up-move
towards testing 10-day SMA resistance near 107.90-92 area and further
towards the trend channel resistance near 108.20 level. A clear
break-out of the ascending channel seems to further assist the pair
towards 20-day SMA resistance near 108.75-77 zone.
On the
downside, 107.00 handle might now act pivot point for the day. Weakness
back below 107.00 level seems to drag the pair back towards ascending
trend-channel support, currently near 106.65 level. A subsequent
weakness below the trend-channel support would make it vulnerable to
drop back towards recent daily closing lows support near 106.20 level.
