FxWirePro: USD/JPY spikes higher on upbeat NFP data, break above 4H 200 SMA to see further upside

USD/JPY chart - Trading View 

USD/JPY spikes higher to near 50% Fib retracement at 108.50 after upbeat NFP data.

US monthly jobs report showed that the economy added 224K new jobs in June beating estimates at 160K.

The data was much better than the previous month's softer reading of 75K. Unemployment rate ticks higher to 3.7%.

A slight deterioration in the risk sentiment, which tends to underpin the Japanese Yen's safe-haven demand could cap upside.

Technical indicators have turned slightly bullish for the near-term . Major trend in the pair remains bearish. 

Stiff resistance seen at 4H 200 SMA at 108.45. Break above could see further upside.

Stochs and RSI have turned, RSI is now above 50 and a bullish divergence on RSI and Stochs keeps scope for gains.

Break below 61.8% Fib (107.61) eyes lower Bollinger Band at 107.08 ahead of 78.6% Fib at 106.31.

Close above 21-EMA could see some upside. Bearish invalidation only above 200-DMA. 

Support levels - 107.61 (61.8% Fib), 107, 106.78 (June 25 low)

Resistance levels - 108.10 (21-EMA), 108.98 (55-EMA), 109

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