USD/JPY Stays Neutral and Waiting NFPNon-farm payrolls report will be released later today. At the same time next week Fed will meet regarding their monetary policy. A weak NFP report may raise the chances of a Fed rate cut in March, but we don’t think it’s going to influence the Fed at its next meeting on December 11.
Risk appetite is also wobbly, which means that a softer report could have a bigger impact on USD/JPY pair, one of the most sensitive pair to the market sentiment. If this is the case, the USD should keeps declining. The pair will meet supports at 108.00, 106.80, and 104.45.
Short-term pullback should continue to show opportunities for buying, as the 50-day SMA is now starting to cross above the 200-day SMA. We're looking for Buy position around 108.00 with the nearest TP target at 109.50. As long as 108.27/00 support area holds, rise from 104.45 remains mildly in favor to resume. The appreciating USD will push the pair to highs at 109.51 (upper line of daily BBs), 110.89, and 112.
And, of course, don't forget that the focus for USD/JPY traders will continue to be on the progress of U.S.-China trade talks. So, each Trump's tweet could bring volatility.
What do you think?
