USDJPY: Holding above Daily Pivot for intraday bullish bias

ASIA ROUNDUP:

• US Dollar continued the bullish sentiment from Thursday's session and positive employment data (with Friday being as bank holiday in US traders were on a break).

• Iron Ore Prices rose to a 1-month high as China restock, after recovering from the 2-year lows seen last month. However it still remains -28% down on the year.

• AU job advertisements are up +4.3%, a 4-month high, recovering from the 3-year low seen in May. AUDUSD recovered some of the losses seen earlier during Asia but intraday bias remains technically bearish.

UP NEXT:

• EUR: German Industrial production has seen increasingly smaller deviations around 0 these past few months (typically ranging between +/- 0.3%instead of the usual +/- 3%) so this may be a non-event. However if we do see a decent deviation the we could see EURUSD break away from recent lows.

• CAD: Positive data will bring further pressure on Central Bank to raise interest rates. Ivey PMI is forecast above 50 but take note is failed to keep above this level last reading. It has not had 2x consecutive times below 50 since Jan 2009, so a number below 50 should be USDCAD positive.

TECHNICAL ANALYSIS:

USDJPY: Holding above Daily Pivot for intraday bullish bias

Whilst Yen hovers above the Daily Pivot and 50 hour eMA, take note that today's high could be part of a 'lower high' in relation to last week’s high. This leaves the potential for a deeper retracement towards 101.80 - 102.00 or for sideways trading (in form of a triangle) before resumption of gains.

Indeed this is a possibility as neither US nor JPY news until much later. In either scenario I favour further upside and to test 102.30 resistance.