USD/JPY analysis: pressuring highs ahead of NFP report
|USD/JPY Current price: 112.77
- Japanese GDP revision and trade balance data ahead.
- USD/JPY expected to range ahead of US employment figures.
The USD/JPY pair is up on the day, trimming its weekly losses and nearing 113.00, despite US Treasury yields remained flat for the day. The Nikkei soared overnight up over 320 points, the main reason beyond latest yen's weakness, as European and American equities, followed the positive lead. Japan's leading index decreased for the second straight month in October according to preliminary readings, dropping to 106.1 from 106.5 in September. The coincident index that reflects the current economic activity rose to 116.5 in October from 116.2 in the preceding month, beating market's expectations. Japan will release Q3 GDP figures, expected with a modest upward revision from preliminary figures, alongside with October Trade balance data. The pair holds near its daily highs with a modest upward potential according to technical readings in the 4 hours chart, as the price continued recovering above its 100 SMA, but holds below the critical 200 SMA now offering a dynamic resistance around 112.90. Technical indicators in the mentioned chart have entered positive territory, but have a limited directional strength. Little should be expected for the upcoming hours, as the USD/JPY pair tends to hold within a tight range ahead of US employment data.
Support levels: 112.45 112.00 111.60
Resistance levels: 112.90 113.30 113.65
View Live Chart for the USD/JPY
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