FxWirePro: USD/JPY recovers from Friday’s slump, eyes 149.00 level

• USD/JPY strengthened  on Monday  as greenback recovered some of its losses  after Friday's slide

• U.S. job growth stumbled in July, falling short of forecasts, while massive downward revisions to the prior two months totaling 258,000 paint a worrying picture of a labor market losing momentum.

• This week’s ISM services report and jobless claims figures will play a key role in determining whether the Federal Reserve adopts a more aggressive policy stance to support the economy.

• Markets are now assigning over a 90% probability to a Federal Reserve rate cut in September, following weaker-than-expected U.S. jobs data. By December, traders are pricing in nearly 60 basis points of total easing.

• Immediate resistance is located at 148.80(38.2%fib), any close above will push the pair towards 150.65(Higher BB).

•  Support is seen at 147.02(50%fib) and break below could take the pair towards  145.88 (Jul 24th low).

Recommendation: Good to buy around 147.70, with stop loss of 147.00 and target price of 149.00