FxWirePro: USD/JPY extends bull run to refresh multi-month highs, US jobs disappointment fails to deter Fed taper plans

USD/JPY chart - Trading View 

Spot Analysis:

USD/JPY was trading 0.44% higher on the day at 112.69 at around 05:45 GMT

Previous Week's High/ Low: 112.25/ 110.82

Previous Session's High/ Low: 112.25/ 111.51

Fundamental Overview:

USD/JPY hit new multi-month high versus the yen as the pair extend bull run for the 3rd straight month.

Disappointing figures from the latest U.S. NFP report did not alter market expectations regarding the U.S. Federal Reserve's asset tapering plans.

The U.S. jobs report Friday disappointed market expectations with non-farm payrolls at 194,000 and the unemployment rate at 4.8% in September.

Despite a weak headline payroll figure, the outlook remains solid. With labor shortages still a possibility and fanning inflation concerns, the Fed is likely to begin asset tapering as soon as November 2021.

Focus now on the consumer price index (due Wednesday). Upbeat data could stoke expectations of an earlier interest rate hike and bring further gains for the USD.

Technical Analysis:

- USD/JPY extends bullish streak for the 6th straight week

- Channel breakout on the daily charts adds to the bullish bias

- Momentum is strongly bullish, volatility is high and rising

- MACD, ADX and the GMMA indicator support further gains

Major Support and Resistance Levels:

Support - 112 (psychological mark and channel top), Resistance - 113.02 (88.6% Fib)

Summary: USD/JPY trades with a bullish bias. Scope for test of 113 mark.