USD/JPY edges higher to 158.00 as markets await US jobs data, though gains remain capped by technical resistance at the 200-day SMA and persistent BoJ rate-hike bets.
The pair rebounded from 157.25 to about 158.00 on Friday, but trades below the 200-day SMA at 158.66 with a mildly bearish near-term tone. BoJ September minutes released Thursday reinforced December rate-hike bets, supporting the Yen, while the USD is subdued ahead of today's NFP report. Strong US jobs data could reverse the bearish bias.
The pair sits below the 200-day SMA at 158.66, BoJ rate-hike expectations for December support the Yen, and traders are waiting for the US jobs report before making big bets.
Resistance is the 200-day SMA at 158.66; support lies at the weekly low of 157.25, then 157.00 and the 156.60-156.50 area, where a convincing break would signal further declines.
A Wall Street rout pushed investors into safe-haven assets and dragged US bond yields to a near two-month low, which also caps the USD. The Democratic midterm sweep lowering inflation and Fed-hike expectations supports the lower-yield environment, though today's NFP could shift this quickly.
Investors sought safe-haven assets during a Wall Street rout and trimmed Fed rate-hike expectations after the Democratic midterm sweep eased inflation concerns.
The decisive Democratic sweep in the US midterms lowered expectations that President Trump will resume military strikes against Iran, triggering a steep decline in crude oil prices and easing inflation concerns. Lower geopolitical risk premiums argue against quick price recovery.
The Democratic midterm sweep lowered expectations that President Trump would resume military strikes against Iran, easing supply fears and pushing prices down steeply.
The USD/JPY pair recovered to the 158.00 level on Friday, snapping a two-day losing streak as traders repositioned ahead of the US Nonfarm Payrolls report. Despite the intraday bounce, the pair remains under pressure below the 200-day SMA at 158.66, weighed down by hawkish Bank of Japan policy expectations and a broader decline in US Treasury yields.
The pair sits below the 200-day SMA at 158.66, BoJ rate-hike expectations for December support the Yen, and traders are waiting for the US jobs report before making big bets.
Resistance is the 200-day SMA at 158.66; support lies at the weekly low of 157.25, then 157.00 and the 156.60-156.50 area, where a convincing break would signal further declines.