USDJPY soars, nears ¥125 again

The greenback was winning on Friday and pushed the yen into defence as bulls were active after Friday's break.  Friday's dip was quickly bought and the pair accelerated around 60 pips higher on Friday to ¥124.70, with appetite to retest the ¥125 mark again later in the session.

Moreover, the unemployment rate remained at 5.3%, while wage growth came out at 2.1% year-on-year, up from 2.0% in the previous month.

From the yen point of view, the current account for June deteriorated sharply, from ¥1880.9 billion to ¥558.6 billion, while the trade balance moved into positive territory, from -¥47.3 billion to ¥102.6 billion.

Figures were positive, although the greenback failed to hold gains and was sold-off into the end of the session in what appears to be a short covering rally on most of the pairs as the payrolls were too obvious. Fed funds futures are now seen indicating a 58% chance that rates will go up at September's meeting, up from 50% before the data.

Pair is currently trading at 124.70 levels and made intraday high of 124.73 levels.

We prefer to stay long in USDJPY, entry 124.10, stop loss 123.99, target at 125.86.