FxWirePro: USD/JPY trades a narrow range, holds gains above the 107 handle
USD/JPY has been trading a thin range in the Asian session, with day's highs at 107.20 and lows at 106.88. The pair has been recovering from fresh 18-month lows at 105.54 (3rd May), but upside lacks momentum. Disappointi…
USD/JPY has been trading a thin range in the Asian session, with day's highs at 107.20 and lows at 106.88.
The pair has been recovering from fresh 18-month lows at 105.54 (3rd May), but upside lacks momentum.
Disappointing China April Caixin Service PMI which came in at 51.8 (prior 52.2) & Composite at 50.8 (prior 51.3) likely to keep risk-off alive.
Markets nervous as we head closer towards the US payrolls release and aslo weaker global equities also keep the safe-haven demand for the yen underpinned.
Supports for the pair are seen at 106.67 (5-DMA), 106.27 (Apr 29th lows) and then 106.13 (May 2nd lows).
Resistance on the upside is located at 107.46 (May 4th highs), 108 and 108.20 (Apr 29th highs).
Techs are inconclusive we would prefer to remain on the sidelines for now.
Focus will be on U.S. weekly jobless claims and building permits data due later today.
Besides, Fed official Bullard’s speech will be closely heard for fresh insights on the US interest rates outlook.
