5 Jun 2015
USD/JPY stuck around 124.50, awaits US data
FXStreet (Mumbai) - The US dollar continues to outperform the Japanese currency for the second straight week, with USD/JPY firmer near 124.50, as the greenback ran through fresh buyers ahead of Europe open with markets still digesting Thursday’s upbeat US unemployment claims ahead of the crucial US labour market report due later in the American session.
USD/JPY consolidates below 125
Currently, the USD/JPY pair trades 0.11% higher at 124.50, oscillating in a 20 pips narrow range. The USD/JPY pair trades lifted as traders favour the greenback given the recent streak of positive US fundamentals.
Moreover, speculation of a Sept Fed rate hike also keeps the USD bulls supported with watchful eyes on today’s US NFP figures in order to confirm the recent bullish sentiment around the US economy.
In addition, the yen remains undermined reacting mainly to the diverging prospects for monetary policy in Japan and the US, where the interest rate differential favours greenback buyers.
The Bureau of Labor Statistics will publish May's non-farm payrolls later in the NA session, which is expected to print a slightly improved figure of 227,000 after 223,000 booked previously.
TD Ameritrade chief strategist JJ Kinahan, noted on Thursday, "The focus for the rest of today is really going to set up for tomorrow morning, with ADP yesterday and jobless claims today, the expectation on the jobs is they will increase."
USD/JPY Technical Levels
To the upside, the next resistance is located at 124.69 (June 3 High) levels and above which it could extend gains 124.93 (June 1 High) levels. To the downside immediate support might be located at 124 below that at 123.76 (June 4 Low) levels.
USD/JPY consolidates below 125
Currently, the USD/JPY pair trades 0.11% higher at 124.50, oscillating in a 20 pips narrow range. The USD/JPY pair trades lifted as traders favour the greenback given the recent streak of positive US fundamentals.
Moreover, speculation of a Sept Fed rate hike also keeps the USD bulls supported with watchful eyes on today’s US NFP figures in order to confirm the recent bullish sentiment around the US economy.
In addition, the yen remains undermined reacting mainly to the diverging prospects for monetary policy in Japan and the US, where the interest rate differential favours greenback buyers.
The Bureau of Labor Statistics will publish May's non-farm payrolls later in the NA session, which is expected to print a slightly improved figure of 227,000 after 223,000 booked previously.
TD Ameritrade chief strategist JJ Kinahan, noted on Thursday, "The focus for the rest of today is really going to set up for tomorrow morning, with ADP yesterday and jobless claims today, the expectation on the jobs is they will increase."
USD/JPY Technical Levels
To the upside, the next resistance is located at 124.69 (June 3 High) levels and above which it could extend gains 124.93 (June 1 High) levels. To the downside immediate support might be located at 124 below that at 123.76 (June 4 Low) levels.