FxWirePro: USD/JPY rangebound around 5-DMA, consensus for solid NFP report keeps downside limited

Friday, October 5, 2018 5:51 AM UTC

USD/JPY chart on Trading View used for analysis

Broad-based selling pressure surrounding the greenback as weak appetite for risky assets helped the safe-haven JPY stay resilient.
Also, a correction lower in yields of the key US 10-year note, slipping from tops beyond 3.20% weighed on the buck.
The major came off lows at 113.63 to close at 113.87 on Thursday's trade. Upbeat data did little to support.
Challenger Job Cuts came in at 70.9% Y/Y while Initial Claims rose at a weekly 207K, bettering prior surveys and taking the 4-Week Average to 207.00K from 206.50K.
Further, Factory Orders also surprised to the upside, expanding at a monthly 2.3% in August.
Overall bias remains higher, but markets to remain cautions heading into the US Non-Farm Payrolls.
Markets expect a healthy non-farm payrolls print today following the ADP report and strong ISM services data.
US labor market is forecast to have produced 188,000 new jobs in September (risk is for a stronger number).

Support levels - 113.58 (88.6% Fib), 113.17 (200W SMA), 112.89 (21-EMA)

Resistance levels - 114, 114.74 (Nov 6 2017 high), 115, 115.30 (trendline)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-hits-11-month-highs-at-11396-positive-momentum-to-continue-11530-in-sight-1436201) has hit TP1.

Recommendation: Hold for upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 39.2992 (Neutral), while Hourly JPY Spot Index was at 24.0527 (Neutral) at 0545 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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