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6 May 2015
USD/JPY: Bears sailaing a tight ship on 120 handle
FXStreet (Guatemala) - USD/JPY is currently trading at 119.93 with a high of 119.96 and a low of 119.85.
USD/JPY has been yet again let go of the 120 handle and remains tentative at this level, with bears sailing a tight ship and bulls unable to come out with convincing results on rallies from the mid point of the 119 handle. Attention is else where in markets such as the Aussie and kiwi, while Japan remains out on holidays for Golden week and US data thus far steering the market until we progress towards the showdown that will come in the form of this week's Nonfarm payrolls results.
Analysts at Brown Brown Brothers Harriman explained " The report will set the tone for the data in the coming weeks. A strong report would strengthen the second camp of course. It is not just about the net new jobs created (non-farm payrolls), but the unemployment rate and average hourly earnings," adding, "The Bloomberg consensus calls for a 225k increase in non-farm payrolls after a disappointing 126k increase in March."
Technically, analysts at UOB Group suggested that the sharp rally that started late last week appears incomplete but at this juncture, any further USD strength is expected to encounter stiff resistance at last month’s high of 120.85. "That said, the outlook for USD is clearly bullish for now and only a break back below 119.20 would indicate that upward pressure has eased."
USD/JPY has been yet again let go of the 120 handle and remains tentative at this level, with bears sailing a tight ship and bulls unable to come out with convincing results on rallies from the mid point of the 119 handle. Attention is else where in markets such as the Aussie and kiwi, while Japan remains out on holidays for Golden week and US data thus far steering the market until we progress towards the showdown that will come in the form of this week's Nonfarm payrolls results.
Analysts at Brown Brown Brothers Harriman explained " The report will set the tone for the data in the coming weeks. A strong report would strengthen the second camp of course. It is not just about the net new jobs created (non-farm payrolls), but the unemployment rate and average hourly earnings," adding, "The Bloomberg consensus calls for a 225k increase in non-farm payrolls after a disappointing 126k increase in March."
Technically, analysts at UOB Group suggested that the sharp rally that started late last week appears incomplete but at this juncture, any further USD strength is expected to encounter stiff resistance at last month’s high of 120.85. "That said, the outlook for USD is clearly bullish for now and only a break back below 119.20 would indicate that upward pressure has eased."