“¢ Fails to build on overnight late rebound amid subdued USD price-action.
“¢ Risk-off mood underpins JPY and further collaborate towards capping.
“¢ Today’s key focus will remain on the keenly watched US monthly jobs report.
The USD/JPY pair struggled to build on its early uptick and is currently placed at the lower end of the Asian session trading range, just below the 114.00 handle.
The pair tried to build on overnight late rebound from an intraday low level of 113.63 and was being supported by a modest rebound in equities, which tends to weigh on the Japanese Yen’s safe-haven status.
However, a subdued action surrounding the US Dollar and the US Treasury bond yields did little to support any follow-through buying and kept a lid on any further up-move.
Meanwhile, investors also seemed reluctant to place any aggressive bets ahead of today’s key event risk and might further collaborate to a subdued/range-bound price through Friday’s trading session.
Later during the early North-American session, the closely watched US monthly jobs report (NFP), with the key focus on wage growth figures, will now play an important role in determining the pair’s next leg of directional move.
Technical levels to watch
On a sustained move back above the 114.00 handle, the pair is likely to head towards testing the 114.50-55 supply zone before eventually aiming towards the key 115.00 psychological mark.
On the flip side, the 113.65-60 region might continue to protect the immediate downside, below which the corrective slide could further get extended towards retesting the 113.10-113.00 support area.
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