The US Dollar (USD) extended upside movement against the Japanese Yen (JPY) on Monday, increasing the price of USDJPY to more than 102.11, following the release of thr US non-farm payrolls data which exceeded expectations. The technical bias remains bearish because of a Lower High in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 102.12. A hurdle may be noted around 102.50, the confluence of a horizontal resistance as well as the 50% fib level as demonstrated in the given below daily chart. A break and daily closing above the 102.50 resistance area shall increase the bullish momentum, validating an upside rally towards the 104.00 level.
On the downside, the pair is likely to find a support around 100.67, the swing high of the recent downside move ahead of 100.00, the psychological number and then 99.00, the low of June 2016. The technical bias will remain bearish as long as the 107.49 resistance area is intact.
Nonfarm Payrolls
The U.S. employers hired at a steady pace in July, a sign of underlying strength for the labor market despite a host of mixed economic signals. Non-farm payrolls rose by a seasonally adjusted 255,000 last month, the Labor Department said Friday. Revisions showed the U.S. employers added 18,000 more jobs in May and June than previously estimated. The unemployment rate, calculated from a separate survey of American households, was unchanged at 4.9% in July. Economists surveyed by The Wall Street Journal had expected employers would add 179,000 jobs in July alongside the unemployment rate of 4.8%.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair on short-term rallies appears to be a good strategy in the near future.
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