USD/JPY consolidates below 1-month tops, NFP awaited
| • Bulls struggling to breakthrough mid-107.00s amid risk-off mood.
• Sliding US bond yields offset a follow-through USD buying interest.
• Focus remains on the keenly watched US monthly jobs report.
The USD/JPY pair struggled to build on its intraday rebound from the 107.00 handle and was now seen oscillating in a range just below mid-107.00s, over 1-month tops.
The pair failed to capitalize on the Asian session uptick and was now being capped by bearish trading sentiment around European equity markets, which underpinned the Japanese Yen's safe-haven appeal.
The risk-off mood, further reinforced by the ongoing slide in the US Treasury bond yields, partly offset a strong follow-through US Dollar buying interest and was seen as one of the key factors keeping a lid on any additional up-move.
Heading into today's key event risk - the release of US monthly jobs data, investors' reluctance to place any aggressive bets further collaborated to the pair's range-bound/subdued price action during the early European session.
Apart from the keenly watched NFP report, the Fed Chair Jerome Powell's scheduled speech would be scrutinized for clues over the central bank's near-term monetary policy outlook and might also provide some meaningful impetus on the last trading day of the week.
Technical levels to watch
Momentum above mid-107.00s could get extended towards 107.75 intermediate resistance en-route the 108.00 handle. On the flip side, the 107.00 handle now seems to have emerged as an immediate support, which if broken might prompt some fresh long-unwinding trade and accelerate the fall towards 106.80-75 intermediate support ahead of 106.50 level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.