USD/JPY attempts recovery near 110.65, focus shifts to US NFP

Risk-off seeps into Europe, as US-China trade row dampens investors’’ sentiment.
A stronger US jobs report could rescue to the USD bulls?

Dhwani Mehta FXStreet

The USD/JPY pair is seen trying hard to take on the recovery above the 110.70 region, as the Yen bulls continue to fight for control amid a resurgence of risk-off sentiment.

The US-China trade war officially kicked-in today after the US implemented the tariffs on the Chinese goods while China retaliated by applying tariffs to the same value of the US products. Markets remain divided over whether these tariffs actions are just tit-for-tat measures or an indication of escalating trade tensions between both the countries.

More so, the US dollar slipped versus its major rivals, with the drop mainly driven by repositioning ahead of the US payrolls data. However, markets expect a solid US jobs report, which could fuel a sharp reversal in the greenback, in turn aiding the recovery in the spot.

USD/JPY Technical Levels

According to the AceTrader Team, “The greenback's intra-day rebound after yesterday's failure to penetrate Wednesday's low at 110.28 suggests the pullback from Tuesday's high at 111.14 has ended there and consolidation with upside bias remains for near-term upmove from 108.12 to resume and yield re-test of aforesaid resistance. Break would extend marginally but daily resistance at 111.40 would hold ahead of today's U.S. jobs report and yield retreat. On the downside, only below 110.28 would revive bearishness for a stronger retracement towards 109.97 but 109.69/70 should remain intact.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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