USD/JPY retreats in tandem with DXY, back at 103

The JPY bulls regained ground somewhat after a renewed risk-off wave hit the European markets, sending USD/JPY back towards 103 handle.

USD/JPY: 102.50 or 103.50 on NFP?

A renewed rally in the USD/JPY pair lost steam just below Thursday’ high, as the bears regained control amid wide-spread risk-aversion, refueled by negative European equities and subdued oil prices.

Additionally, a retreat in the US dollar against its major peers (DXY) also partly contributed to the latest move lower in USD/JPY. The major is last seen exchanging hand at 103.02, up +0.05% on the day.

The immediate focus now remains on the US payrolls data lined up for release in the NA session, with markets expecting 175k new job additions in the US economy last month versus 156k seen in Sept.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 103.44 (daily R1). A break above the last, the major could test 103.67 (5-DMA) and 104.03 (20-DMA) beyond the last. While to the downside, the immediate support is seen at 102.85/83 (100-DMA/ daily low) next at 102.54 (multi-week lows) and below that at 102 (round number).

To learn more about this topic, check our video analysis