FxWirePro: USD/JPY comatose ahead of Non-Farm-Payrolls data, bias bearish

Chart - Courtesy Trading View 

USD/JPY was trading largely unchanged at 128.60 at around 06:00 GMT, bias remains bearish.

The pair was trading in tight ranges with session high at 128.82 and low at 128.4, traders wary ahead of key NFP data.

US dollar has seen a sharp fall to fresh cycle lows on the back of the Federal Reserve chairman Jerome Powell's mixed speech.

The Nonfarm Payrolls event will be a critical component of the Fed's interest rate outlook and will drive immediate price action.

US economy is expected to have added 220k jobs vs. the former release of 223K. The  Unemployment Rate and average hourly earnings are expected to have remained steady at 3.5% and 0.3% MoM respectively.

On the other side, Japan Jibun Bank Services PMI (Jan) dropped marginally to 52.3 from the former release of 52.4.

Bank of Japan (BoJ) Governor Haruhiko Kuroda said on Friday, “BoJ must maintain ultra-easy policy to support the economy and create an environment for firms to hike wages.”

Kuroda said that he “expects wages to rise quite significantly due to a very tight job market.”

Major Support Levels: 

S1: 127.08 (Lower BB)

S2: 124.71 (110-week EMA)

Major Resistance Levels: 

R1: 130.13 (21-EMA)

R2: 131.34 (55-week EMA)

Summary: USD/JPY trades with a bearish bias. Volatility expected in price action in the run upto NFP data. Death Cross adds to the bearish bias for the pair. Scope for fresh multi-month lows below 127.21.