Will USD/JPY Hold 115.00?

Will USD/JPY Hold 115.00?

What a reversal its been for USD/JPY! The pair has basically traced out a bearish engulfing in the weekly as all of the post BOJ gains have been erased with markets buying yen once again amidst deteriorating equity flows and growing consensus that US rates will remain stationary for the foreseeable future.

The pair now teeters near the absolute key support of 115.00 which has been a base for more than 2 years. That level has been tested more than four times and has held every time. Tomorrow’s NFP could provide another test especially if the data disappoints dashing any last hopes for further Fed tightening. A weak labor number would confirm the global slowdown and would put further downward pressure on the pair breaking long term support. But to have that happen the news tomorrow would have to be a real shocker. For now the 115.00 appears to be safe from assault.

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