FxWirePro: USD/JPY extends range trade, struggles at the 107 handle ahead of NFP
USD/JPY is confined in a 38-pips narrow range, extends subdued trade as markets await crucial NFP data. The pair has been recovering from fresh 18-month lows at 105.54 (3rd May), but upside lacks momentum. The pair faced…
USD/JPY is confined in a 38-pips narrow range, extends subdued trade as markets await crucial NFP data.
The pair has been recovering from fresh 18-month lows at 105.54 (3rd May), but upside lacks momentum.
The pair faced rejection just below 107.50 for the third straight session and is struggling at the 107 handle.
Traders reluctant to take major bets as we head closer towards the US payrolls release and aslo persistent risk-off moods keep the safe-haven demand for the yen underpinned.
The US private sector is expected to have created 200,000 new jobs in April, slightly less compared to the figure of 215,000 booked a month ago, while a 0.3% gain is expected in the hourly wages.
Any disappointment could weigh heavily on the USD. Supports for the pair are seen at 106.85 (5-DMA), 106.27 (Apr 29th lows) and then 106.13 (May 2nd lows).
Resistance on the upside is located at 107.46 (May 4th highs), 108 and 108.20 (Apr 29th highs).
Fed Bullard earlier today noted it was difficult to conclude whether rate predictions by the Fed or by the markets were more accurate.
