FxWirePro: USD/JPY refreshes 20-year high above 131 handle, risk-aversion keeps US dollar bid

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading 0.38% higher on the day at 131.00 at around 06:00 GMT.

Previous Week's High/ Low: 130.81/ 128.61

Previous Session's High/ Low: 130.81/ 130.09

Fundamental Overview:

China’s Premier Li warns of 'grave' employment crisis as covid lockdowns weigh on the labor market.

News concerning China, Russia joins strong yields to underpin USD strength. US 10-year Treasury yields hit fresh high since late 2018, up by two basis points (bps) near 3.15%.

Friday’s US jobs report for April and the following comments from Fed speakers fail to justify Fed Chair Jerome Powell’s rejection of 75 basis points (bps) of a rate hike. 

The US Nonfarm Payrolls (NFP) reprinted at 428K, beating forecasts at 391K. The Unemployment Rate also remained intact at 3.6%.

Technical Analysis:

- USD/JPY extends gains for the 3rd straight session

- Price action holds above 5-DMA, major moving averages are trending higher

- GMMA indicator shows major and minor trend are strongly bullish

- The pair is trading above daily cloud and chikou span is biased higher

Major Support and Resistance Levels:

Support - 130.22 (5-DMA), Resistance - 131.97 (Upper BB)

Summary: USD/JPY trades with a bullish bias. The pair has refreshed 20-year high at 131.34. Next bull target lies at 133.82 (Apr 2002 high).