USD/JPY Set to Edge Lower?
USDJPY: the USDJPY could move lower today as the latest Nonfarm Payroll release in the USA is set to cause strong trends in this currency pair. Specifically, a weaker-than-expected NFP report can further delay Fed tapering and rate hikes, and would therefore put further selling pressure on the Greenback. Meanwhile, market volatility remains high and anything that triggers a risk-off approach in the stock market would further support safe-haven currencies such as the Japanese Yen.
From a technical perspective, the pair is showing resistance in the 110.00JPY area and if the market falls below this key psychological level, we could quickly see the selloff trend intensify. We are looking for entries after the NFP release with a focus on key Resistance levels. We would see a solid potential SELL trade around the following levels: sell stop: 109.90, SL: 110.30, TP: 108.50.