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USDJPY – Forming a Bottom?
After a week of selling off USDJPY appears to have finally found support at the 101.00 level. If it can indeed hold that price level, the pair will have achieved one of my favorite technical formations -- a triple bottom of higher lows. Technically that would suggest that the pair is likely to resume the upward trend that could lift it towards the 104.00 resistance.
On a fundamental level tomorrow the market will get a look at the NFP payroll data and while the consensus is looking for a softer print of 170K versus 285K the month prior, chances are that the number should be strong enough to keep the US Q3 growth on 2% trajectory. Pre release data has been mixed, but none of the reports we look at suggest any ominous drop in demand.
Therefore with labor data likely in line USDJPY could see 102.00 by week’s end as the longs return to the trade.