FundamentalOverview

The USD remained prettymuch supported since the US NFP report as the data came out betterthan expected and triggered a hawkish repricing in interest rates expectations.Unfortunately for the greenback, that wasn’t enough as wage growth came out onthe softer side which limited further repricing and more sustained gains.

On the JPY side, we gotsome disappointing wage growth figures on Monday and the US-Japan negotiationsdon’t look to be going well. As a reminder, the BoJ continues to place a greatdeal on the US-Japan trade deal before looking at adjusting rates. So, negativenews on the trade front erodes the hopes for another rate hike by year-end.

USDJPYTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that USDJPY continues to edge higher towards the 148.28 resistance. If the price gets there, we canexpect the sellers to step in with a defined risk above the resistance toposition for a drop back into the 142.35 support. The buyers, on the otherhand, will look for a break higher to increase the bullish bets into the 151.19level next.

USDJPY TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we have an upward trendlinedefining the bullish momentum. The buyers will likely continue to lean on thetrendline with a defined risk below it to keep pushing into new highs, while thesellers will look for a break lower to pile in for a drop back into the 144.35 zone.

USDJPY TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee that we have a minor resistance zone around the 146.50 level. This is wherewe can expect the sellers to step in to target a break below the trendline,while the buyers will look for a break higher to increase the bullish bets intothe 148.28 level next. The red lines define the average daily range for today.

UpcomingCatalysts

Today, we get the latest US Jobless Claims figures.