FxWirePro: USD/JPY rangebound around 5-DMA, consensus for solid NFP report keeps downside limited

USD/JPY chart on Trading View used for analysis

• Broad-based selling pressure surrounding the greenback as weak appetite for risky assets helped the safe-haven JPY stay resilient.
   
• Also, a correction lower in yields of the key US 10-year note, slipping from tops beyond 3.20% weighed on the buck.
   
• The major came off lows at 113.63 to close at 113.87 on Thursday's trade. Upbeat data did little to support. 
   
• Challenger Job Cuts came in at 70.9% Y/Y while Initial Claims rose at a weekly 207K, bettering prior surveys and taking the 4-Week Average to 207.00K from 206.50K. 
   
• Further, Factory Orders also surprised to the upside, expanding at a monthly 2.3% in August.
   
• Overall bias remains higher, but markets to remain cautions heading into the US Non-Farm Payrolls. 
   
• Markets expect a healthy non-farm payrolls print today following the ADP report and strong ISM services data. 
   
• US labor market is forecast to have produced 188,000 new jobs in September (risk is for a stronger number).

Support levels - 113.58 (88.6% Fib), 113.17 (200W SMA), 112.89 (21-EMA)

Resistance levels - 114, 114.74 (Nov 6 2017 high), 115, 115.30 (trendline)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-hits-11-month-highs-at-11396-positive-momentum-to-continue-11530-in-sight-1436201) has hit TP1.

Recommendation: Hold for upside. 

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 39.2992 (Neutral), while Hourly JPY Spot Index was at 24.0527 (Neutral) at 0545 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.