FxWirePro: USD/JPY holds tight range ahead of key U.S. payrolls data

• USD/JPY eased slightly on Friday  as traders awaited the U.S. nonfarm payrolls report for fresh direction.

• The monthly U.S. payrolls report, due later on Friday, could provide more clues on the Fed's rate path.

• Japanese authorities carried out their largest-ever single-day yen-buying intervention in April, using around $40 billion of foreign currency reserves to purchase the yen as they resumed aggressive efforts to slow its decline..

• The intervention provided temporary support for the yen, pushing it up from a near two-year low of 160.725 per dollar to around 155 by May 6, but it failed to change the currency's broader weakening trend.

•Traders are closely monitoring the risk of further yen-buying intervention as the Japanese currency weakens past 158 against the dollar, with upcoming U.S. jobs data expected to provide clues on the Fed's future policy direction.
 
• Immediate resistance is located at 158.61(Daily high), any close above will push the pair towards 159.50 (50%fib).

•  Support is seen at 157.66 (38.2%fib) and break below could take the pair towards 156.55(Lower BB).

Recommendation: Good to sell  around 158.60, with stop loss of 159.50 and target price of 158.00