• 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
