The USDJPY currency pair, which was trading at 142.651, continued to decline after a brief recovery, in a volatile market influenced by the Non-Farm Payroll report.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• USD/JPY resumed its slide after a rebound amidst volatility following NFP.

The pair currently trades last at 142.651.

The previous day high was 144.66 while the previous day low was 143.56. The daily 38.2% Fib levels comes at 143.98, expected to provide resistance. Similarly, the daily 61.8% fib level is at 144.24, expected to provide resistance.

The USD/JPY fell to 142.41, reaching the lowest level in two weeks after the release of US labor market data. The Greenback weakened after the first miss against expectations in NFP since April 2022.

Nonfarm Payrolls (NFP) in the US rose by 209,000 in June, below the market expectation of 225,000. May’s increase of 339,000 was revised lower to 306,000. The Unemployment rate edged lower to 3.6%.

“The US employment report for June was mixed. It is true that job growth slowed to 209 thousand. But other aspects turned out better than in May. Even though the labor market is cooling, it likely remains too strong from the Fed’s perspective. The Fed is therefore likely to raise rates again this month,” explained analysts at Commerzbank.

US yields experienced sharp moves following the release of the NFP. The 10-year yield dropped towards 4.00% but then rebounded, hitting fresh cycle highs at 4.09%, and after Wall Street’s opening, it was heading lower again. The 2-year yield tumbled to 4.75% and then rebounded to 5.00%.

The market currently shows higher odds of a rate hike at the next meeting, but a decline for a second rate hike before year-end. These moves influenced the USD/JPY pair. As yields turned down again, the pair is moving towards daily lows. It did bounce from the post-NFP bottom, the lowest since June 22, all the way back to 143.40.

The short-term outlook for USD/JPY remains bearish. The dollar needs to break 144.00 to alleviate the negative pressure. On the flip side, below 142.50, the next support area is around 142.00.

On a weekly basis, the Dollar is about to end a three-week positive streak. So far, it is trading 150 pips below the level it had a week ago, enough to become the worst weekly performance since March.

Technical Levels: Supports and Resistances

USDJPY currently trading at 142.81 at the time of writing. Pair opened at 144.07 and is trading with a change of -0.87 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 142.63, 50 SMA 139.65, 100 SMA @ 136.72 and 200 SMA @ 137.24.

The previous day high was 144.66 while the previous day low was 143.56. The daily 38.2% Fib levels comes at 143.98, expected to provide resistance. Similarly, the daily 61.8% fib level is at 144.24, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 143.53, 142.99, 142.43
• Pivot resistance is noted at 144.63, 145.2, 145.74

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group