FxWirePro: USD/JPY set to extend previous week's gains, 200W MA at 108.99 in sight

USD/JPY chart - Trading View 

USD/JPY was trading 0.05% higher on the day at 108.41 at around 04:00 GMT, after closing 0.37% on Friday's trade.

The pair rallied to fresh multi-month tops above 108 handle on Friday, strong buying interest around USD remained unabated.

U.S. Nonfarm Payrolls rose by 379,000 in February, data published by the US Bureau of Labor Statistics showed on Friday. 

Nonfarm Payrolls beat market expectation of 182,000 by a wide margin and the reading followed January's increase of 166,000 (revised from 49,000).

Further details of the report showed that the Unemployment Rate edged lower to 6.2% from 6.3% and the Labor Force Participation Rate stayed unchanged at 61.4%. 

Finally, wage inflation, as measured by the Average Hourly Earnings, remained steady at 5.3% on a yearly basis. 

Over the weekend, US President Joe Biden’s $1.9trn stimulus passed the Senate 50-49 and it will go to the House on Tuesday.

The safe-haven Japanese yen weighed down by expectations for a strong global economic recovery and the prevalent risk-on mood. 

Major Support Levels: 

S1: 108.13 (76.4% Fib)

S2: 107.92 (55-month EMA)

S3: 107.68 (5-DMA)

Major Resistance Levels: 

R1: 108.99 (200W MA)

R2: 109.56 (76.4% Fib)

R3: 110 (Psychological mark)

Summary: USD/JPY trades with a strong bullish bias. The pair has edged above 55-month EMA and is on track to test 200W MA resistance at 108.99. Oscillators are at overbought zone, but do not show any signs of reversal. With no major data from the U.S. docket, focus will be on Japan Q4 GDP and risk catalysts to drive price action.