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  • USD/JPY closes the week’s opening gap and continues to trade at last Friday’s prices.
  • It’s NFP week and traders are already bracing as Monday sees major markets extending their weekend.

The USD/JPY is back into last week’s close, trading near 109.40 after the new trading week opened with a bullish gap touching into 109.83.

The US Dollar flubbed the bullish opportunity, and the pair closed the opening gap to find itself trading more or less where it ended last week.

It’s a quiet week ahead for both currencies with a less-than-usual showing on the economic calendar; Japans sees the Unemployment Rate late Monday at 23:30 GMT, which is expected to remain unchanged at 2.5%. On the US side, markets are shuttered for Monday as the US celebrates Memorial Day, and the first action of the week comes from a speech from the Fed’s Bullard early on Tuesday at 04:40 GMT.

With a thin week ahead, traders are already turning their eyes to the Non-Farm Payrolls, not due until Friday.

USD/JPY levels to watch

Valeria Bednarik, FXStreet’s Chief Analyst, noted the pair’s technical stance heading into the new week: “in the 4 hours chart, the pair is trading between its 100 and 200 SMA, with the largest offering support at 109.10, while the Momentum indicator losses upward strength below its mid-line and the RSI stands pat around 39, all of which favors a downward extension on a break below the mentioned support.”