- The USD/JPY pair sunk sharply towards lower levels on Friday, as the data showed US employment data came below expectation attracting investors back in the safe heaven Japanese yen.
- The Japanese yen also attracted buying interest on growing doubts whether Federal Reserve would raise US interest rate soon.
- Further upside is expected to be limited as the pair finds strong resistance at 107.63 which should limit upside and bring a decline towards lower levels.
- To the upside, the strong resistance can be seen at 107.63 a break above this level would take the pair towards next resistance level at 108.00.
- To the downside immediate support can be seen at 106.50, a break below this level will open the door towards next level at 106.15.
Resistance Levels
R1: 106.50 (50% Retracement Level)
R2: 107.33 (61.8% Retracement Level)
R3: 107.63 (Session high)
Support Levels
S1: 106.50 (38.2% Retracement Level)
S2: 106.15 (23.6% Retracement Level)
S3: 105.44 (May 3rd low)
