8 May 2015
USD/JPY flirts with 120
FXStreet (Mumbai) - The US dollar held gains and wavered around the 120 psychological resistance during the European session, with USD/JPY directionless ahead of the much awaited non-farm payrolls data. While the US dollar continues to swing between gains against its major peers struggling to sustain US macro data led previous gains.
US NFP in focus
Currently, the USD/JPY pair trades 0.22% at 120.01, struggling to retest fresh session highs reached at 120.09. The USD/JPY pair continues to remain supported after better than expected US jobless claims release boosted the US dollar in the previous session.
The initial jobless claims showed another strong reading, slightly rising to 265,000 in the week ending May 2, after a 15-year low at 262,000 the week before.
Moreover, yen also remains undermined versus the greenback after Bank of Japan’s (BO) minutes revealed that QQE is likely to extend until the central bank achieves its 2% price target.
However, the upside in the USD/JPY pair remains capped as the shorter duration and longer duration treasury yields have turned negative ahead of NFP.
Looking ahead, all eyes are set on the critical non-farm payrolls figures. NFP is expected to post a 230,000 gain, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.09 (Today’s High) levels and above which it could extend gains 120.30 (May 1 High) levels. To the downside immediate support might be located at 119.71 (Today’s Low) below that at 119.18 (May 6 Low) levels.
US NFP in focus
Currently, the USD/JPY pair trades 0.22% at 120.01, struggling to retest fresh session highs reached at 120.09. The USD/JPY pair continues to remain supported after better than expected US jobless claims release boosted the US dollar in the previous session.
The initial jobless claims showed another strong reading, slightly rising to 265,000 in the week ending May 2, after a 15-year low at 262,000 the week before.
Moreover, yen also remains undermined versus the greenback after Bank of Japan’s (BO) minutes revealed that QQE is likely to extend until the central bank achieves its 2% price target.
However, the upside in the USD/JPY pair remains capped as the shorter duration and longer duration treasury yields have turned negative ahead of NFP.
Looking ahead, all eyes are set on the critical non-farm payrolls figures. NFP is expected to post a 230,000 gain, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.09 (Today’s High) levels and above which it could extend gains 120.30 (May 1 High) levels. To the downside immediate support might be located at 119.71 (Today’s Low) below that at 119.18 (May 6 Low) levels.