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USD/JPY: NFP unlikely to smite greenback, 110.00 level on the cards

The USD/JPY pair is trading at around 109.30 ahead of the Nonfarm Payrolls report due out at 12:30 GMT, bullish in the short-term, may run to 110.00 on a break above 109.45, FXStreet’s Chief Analyst Valeria Bednarik reports.

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Key quotes

“The US is expected to have lost 8 million jobs in May, while the unemployment rate is seen jumping to 19.8% from 14.7%. The chances of a steeper dollar’s decline with numbers within expectations are limited.”

“Beyond the 109.45 daily high, and within a risk-on environment, USD/JPY could extend its rally towards the 110.00 region with the release of the NFP report. To the downside, the main support comes at 108.65, with bulls retaining control as long as the pair remains above it.”

“Japanese data released overnight was mixed, as Overall Household Spending declined by 11.1% YoY in April, better than anticipated. However, the preliminary estimate of the April Leading Economic Index plunged to 76.2 from 85.1, also missing the market’s expectations.”

 

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