FxWirePro: USD/JPY extends range trade, hovers around 101 handle, NFP in focus
USD/JPY hovers around the 101 handle, trades an extremely narrow range in the Asian session. Jawboning attempts by the Japanese government official had little impact on the yen. Japan Ministry of Economy, Trade and Indus…
USD/JPY hovers around the 101 handle, trades an extremely narrow range in the Asian session.
Jawboning attempts by the Japanese government official had little impact on the yen.
Japan Ministry of Economy, Trade and Industry (METI) Minister Hiroshige Seko said the government is watching how strong Yen may affect corporate capex plans.
Seko reportedly said strong Yen could prompt big Japanese firms to revise capex plans.
Yen largely muted despite the comments, USD/JPY currently trades 0.05 pct down at 101.15.
Downside vulnerable below 101 handle, test of 98.78 (June 24 low) likely on violation there.
Markets will continue to track the broader market sentiment ahead of the US non-farm payrolls data due later in the US session.
Break above 5-DMA (101.38) finds next resistance at 103 (10-DMA) and then 104.50 (falling trendline).
After two months of wide divergence in NFP numbers (May a big miss, June a big beat), the U.S. Dollar could see significant volatility around the release.
Expectations for the headline print at +180k jobs, should NFP print stronger than expectations, we’ll likely see additional USD-strength.
