USD/JPY: Recovery extension depends on NFP

FXStreet Team FXStreet

USD/JPY is trading at daily highs in the 105.70 price zone, as the greenback gets some market attention. US Congress is still unable to reach an agreement on an aid package while the NFP report is expected to have added 1.6 million jobs in July. The pair is at risk of falling from a technical point of view but depends on US data, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The US Congress is still unable to reach an agreement on a fiscal stimulus package, and US President Trump menaced to do it by executive order. Also, he exacerbated tensions with China, by issuing an order banning TikTok and WeChat from operating in the US in 45 days, if they are not sold by parent companies.”

“As for the US NFP report, the market expects that the country had added 1.6 million jobs in July, after adding 4.8 million in the previous month. The unemployment rate is expected to have shrunk from 11.1% to 10.5%, although the participation rate is also seen down, from 61.5% to 61.1%.”

“The 4-hour chart shows that the USD/JPY pair is trying to surpass a bearish 20 SMA, while still below the larger ones, as technical indicators grind higher within neutral levels.”

“The pair could extend gains and close the week with a positive tone only if it manages to advance above the 106.10 resistance.”

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FXStreet Team

FXStreet

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