FxWirePro: USD/JPY Edges Higher from 3-Week Low of 108.50,rejected Above 109 Handle, Caution ahead of NFP
- Renewed bout of risk-aversion in the markets after the Chinese services PMI deteriorated in May, reinforced China slowdown fears and supported Yen buying.
- USD/JPY attempted recovery from fresh 3-week low of 108.50 hit on Thursday, but was rejected above 109 handle.
- Bias lower, but markets remains wary and refrain from placing big bets on the USD/JPY pair heading to the US NFP release due later today.
- The pair is trading a narrow range, with day's high at 109.13 and low at 108.74.
- The US data has been very mixed, but Fed speakers continue to remain upbeat on Q2 performances.
- The next directional move with depend on how the market understands US employment data, ADP was as expected.
- Our previous call (http://www.econotimes.com/FxWirePro-Yen-buying-dominates-amid-risk-off-USD-JPY-hit-fresh-2-week-lows-good-to-sell-rallies-216139) has achieved TP1.
Recommendation exiting trade at lows, markets to remain volatile into NFP.