- USD firmed slightly on Thursday on China data relief, pushing USD/JPY above the 120.00 psychological level
- China's Sept NBS manufacturing PMI came in slightly better than expected, but still sits in contraction territory at 49.8, as does the Caixin/Markit final PMI at 47.2
- Gains were however limited, USD/JPY rally stalled at 120.27, caution prevailed ahead of key U.S. jobs data on Friday
- Stocks on the Asian bourses extend bullish momentum from the previous session, tracking the strong gains overnight on Wall Street and on European indices
- Market's attention now turns to Friday's payrolls data which is expected to show growth of 203k jobs, China closed the next week for National Day celebrations
- USD/JPY is currently trading at 120.21, with immediate resistance at 120.35 (Session High Sep 30) and support at 119.25 (Daily Low Sep 29)
- We recommend waiting for breaks above 120.27 to go long
R1: 120.35 (Session High Sep 30)
R2: 120.54 (Daily Cloud Base)
R3: 120.60 (Daily High Sep 28)
Support Levels:
S1: 119.25 (Daily Low Sep 29)
S2: 119.21 (Daily Low Sep 24)
S3: 119.05 (Daily Low Sep 18)
