FxWirePro: USD/JPY resumes downside after failing to break above 110.72
USD/JPY inched dipped on Monday as Japanese yen was buoyed by disappointing U.S. jobs data on Friday that dimmed the prospects for an aggressive run of interest rate increases in the world's biggest economy. U.S. job gro…
USD/JPY inched dipped on Monday as Japanese yen was buoyed by disappointing U.S. jobs data on Friday that dimmed the prospects for an aggressive run of interest rate increases in the world's biggest economy.
U.S. job growth slowed in May and employment gains in the prior two months were not as strong as previously reported, suggesting the labour market was losing momentum.
The dollar also weakened after data showed U.S. factory orders post first drop in five months. Factory goods orders dropped 0.2 percent, the Commerce Department said on Monday after an upwardly revised 1.0 percent increase in March.
The ongoing weakness is set to continue for this pair as the resistance level at 111.00 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the strong resistance can be seen at 110.72, a break above this level would take the pair towards next resistance level at 111.00.
To the downside immediate support can be seen at 110.39, a break below this level will open the door towards next level at 110.00.
