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The USD/JPY pair is trading just below the 38.2% retracement of its June monthly slide at 107.50, neutral in the short-term, ahead of the US Nonfarm Payrolls report. Valeria Bednarik, Chief Analyst at FXStreet, marks support and resistance at 106.95 and 107.95 respectively.

Key quotes

“The Nonfarm Payrolls report is expected to show that the country recovered 3 million jobs in the month, while the unemployment rate is seen contracting from 13.3% to 12.3%.”

“The 4-hour chart shows that the 20 and 200 SMA converge a few pips above the 38.2% retracement of USD/JPY June monthly slide at 107.50, while the 100 SMA hovers a few pips below the current level. Technical indicators, in the meantime, are directionless within negative levels.”

“The main support now is 106.95, the 23.6% retracement of the mentioned decline, while the most relevant resistance is 107.95.”