USD/JPY trims recovery gains, back below 108.00 handle
• Fresh US-China trade optimism helps regain positive traction during the Asian session.
• Fading safe-haven demand provided an additional boost and remained supportive.
• The prevalent USD bearish bias capping gains ahead of the US monthly jobs report.
The USD/JPY pair struggled to build on its attempted recovery move and quickly erased around 50-60 pips from Asian session tops, slipping back below the 108.00 handle.
Renewed hopes that the upcoming US-China trade talks would make some progress, coupled with initial signs of stability in equities dented the Japanese Yen's safe-haven status and initially assisted the pair to build on the overnight strong rebound from the flash crash low to over nine-month lows.
The pair touched an intraday high level of 108.45 but quickly ran out of steam amid absent US Dollar buying interest. The USD bulls seemed unimpressed by Thursday's upbeat ADP report, rather reacted negatively to dovish comments by Dallas Fed President Robert Kaplan and disappointing US ISM manufacturing PMI.
Despite the pull-back, the downside remained cushioned, at least for the time being, as traders now seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of today's important release of the closely watched US monthly jobs report, popularly known as NFP.
The US economy is anticipated to have added 177k new jobs in December, while the unemployment rate is seen holding steady at 3.7%. The key focus, however, will be on wage growth data, foreseen to post another month of solid growth, which should provide some meaningful impetus later during the early North-American session.
Technical levels to watch
Today Last Price: 107.91
Today Daily change: 39 pips
Today Daily change %: 0.363%
Today Daily Open: 107.52
Previous Daily SMA20: 111.45
Previous Daily SMA50: 112.5
Previous Daily SMA100: 112.3
Previous Daily SMA200: 111.09
Previous Daily High: 109.12
Previous Daily Low: 104.75
Previous Weekly High: 111.41
Previous Weekly Low: 110
Previous Monthly High: 113.83
Previous Monthly Low: 109.55
Previous Daily Fibonacci 38.2%: 106.42
Previous Daily Fibonacci 61.8%: 107.45
Previous Daily Pivot Point S1: 105.14
Previous Daily Pivot Point S2: 102.75
Previous Daily Pivot Point S3: 100.76
Previous Daily Pivot Point R1: 109.52
Previous Daily Pivot Point R2: 111.51
Previous Daily Pivot Point R3: 113.89