FxWirePro: US Dollar strengthens ahead of NFP data, USD/JPY edges towards post-flash crash highs

USD/JPY chart on Trading View used for analysis

• USD/JPY edges higher as dollars gathers strength ahead of the crucial NFP data.
   
• Data overnight showed that the US economy in December added 271K new jobs according to the ADP employment report.
   
• December 2018 ADP employment report beat expectations at 179K, saw the best job creation since Feb 2017 and the fourth largest monthly job creation since the 2009 recession.
   
• Upbeat ADP report has raised expectations of the upside surprise in Friday’s non-farm payroll report. Market forecast for NFP of 177K.
   
• Further, reports that the US House of Representatives passed the bill that would end the shut down for several agencies lifted the greenback. 
   
• Yen on the other hand was undermined by a bit of jawboning from the Japanese authorities. 
   
• USD/JPY is hovering around 61.8% Fib. The pair finds imeediate resistance at 5-DMA at 108.94.
   
• Break above 5-DMA could see test of 21-EMA at 110.98. Decisive break above 200-DMA could see more upside.
   
• Techs are largely biased lower. However, momentum indicators are at oversold levels which could see minor bounce at current levels.

Support levels - 106.75 (78.6% Fib), 104.81 (200M SMA), 104.62 (Mar 2018 low), 104

Resistance levels - 108.41 (61.8% Fib), 108.95 (5-DMA), 111.05 (200-DMA)