USD/JPY Extends the Bounce Near 109.00

USD/JPY Extends the Bounce Near 109.00

3 June 2016, 12:18
Roberto Jacobs
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USD/JPY Extends the Bounce Near 109.00

After dropping to lows near 108.50, USD/JPY has managed to gather traction and advance to the boundaries of the 109.00 handle.

USD/JPY focus on US data

Spot is gaining smalls so far, on its way to test the 109.00 handle after brief visit to daily lows in the mid-108.00s in early trade.

JPY has recently derived support from the sharp drop in GBP/JPY, following the increasing likeliness of a ‘Brexit’ scenario after UK-EU Referendum polls showed a pick-up of the ‘Leave’ vote.

In addition, scepticism over the possibility of further easing by the BoJ plus Abe’s government delaying the sales tax hike for 30 months have also contributed to the bid tone in the safe haven.

Ahead in the session, US Non-farm Payrolls will be the main highlight followed by Factory Orders and the ISM Non-manufacturing.

USD/JPY levels to watch

As of writing the pair is up 0.09% at 108.97 facing the immediate up barrier at 111.45 (high May 30) followed by 111.92 (high Apr.28) and then 112.16 (100-day sma). On the other hand, a breakdown of 108.50 (low Jun.3) would target 105.52 (2016 low May 3) en route to 105.18 (low Oct.15 2015).

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