USD/JPY Could be Eyeing 108.00 Level

USD/JPY Could be Eyeing 108.00 Level

9 May 2016, 08:55
Roberto Jacobs

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.


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