FundamentalOverview

The JPY lost some moreground this week following Japan’s PM Ishiba’scomments on Wednesday as he delivered dovish remarks.

As a reminder, the JPY gota boost last week when he was elected because he was viewed as a hawk andsupportive for further rate hikes. It turned out that he’s the opposite andtherefore the JPY erased the gains.

On the same day, we got abetter than expected USADP report and given the market sensitivity to labour market data, the USDgained across the board as the market pared back the expectations for a 50 bps cut in November.

All eyes today will be on the US NFP report as it's going to influence the magnitude of future Federal Reserve rate cuts.

USDJPYTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that USDJPY rejected the key swing high level at 147.20. The buyers willwant to see the price breaking higher to increase the bullish bets into the150.00 handle next, while the sellers will look to pile in around these levelswith a defined risk above the swing high to position for a drop back into the140.20 support.

USDJPY TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we have a minor upward trendline defining the current bullishmomentum. The buyers will likely lean on the trendline with a defined riskbelow it to position for a rally into new highs. The sellers, on the otherhand, will want to see the price breaking lower to position for a drop into thenext trendline around the 143.00 handle.

USDJPY TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee more clearly the rejection from the swing high level. There’s not much elseto add here as the buyers will look for a bounce on the trendline or a breakabove the swing high level, while the sellers will want to see the pricebreaking below the trendline to increase the bearish bets into the 140.20support. The red lines define the average daily range for today.

UpcomingCatalysts

Today we conclude the week with the US NFP report where the consensus sees140K jobs added and the unemployment rate to remain unchanged at 4.2%.

See the video below