- The dollar appreciates in the market before nonfarm payrolls.
- Strong rise in Treasury yields.
The USD / JPY is rising modestly on Friday, completing three days in a row with gains so far. The rally lost steam on Friday after reaching 109.88. The subsequent retracement found support at 109.65 and from there it is getting closer to the day’s highs again. The expectation placed on the US data
The USD / JPY advance moderated ahead of the release of the US employment report, which includes non-farm payrolls and the unemployment rate. Rising Treasury yields are not weakening the yen significantly at the moment. The 10-year rate is at 1.26%, up 2.70% on the day.
Braking in the mean of 20 days
The big bounce from two-month lows for USD / JPY has slowed for the moment at the 20-day moving average that is passing by 109.90, and it is flattening out. This may indicate that if it were to rise above it, the dollar would gain support to extend the recovery. The next resistance can be seen at 110.30.
In the opposite direction, now 109.65 is the immediate support followed by 109.35 / 40 and below the attention will turn to 109.05. If there is a confirmation at levels below 109.00, it would be expected that negative pressures will increase.
Technical levels
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