Monday, 7 August 2017
What’s next? – USDJPY 07.08.17
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what’s next
USDJPY
The dollar/yen was up 0.02 percent as of 05:00 GMT on Monday to trade at 110.70, with upbeat jobs data still pushing the pair higher and as traders looked ahead of key inflation figures and a batch of Fed speakers later in the week.
The US Labor Department said 209,000 jobs were added in the previous month, above from an initially estimated 183,000. The unemployment rate ticked down to 4.3 percent, while average hourly earnings advanced 0.3 percent marking its largest move since October 2016.
These figures were supportive for the American currency, which rose against its major rivals across the market to move away from fifteen-month lows at the end of the week. The US dollar index traded at 93.32, easing 0.11 percent by the time of this writing.
Last week, the dollar came under pressure in reaction to Washington’s ongoing political turmoil. Sources related to the Trump-Russia case said Special Counsel Robert Muller had assigned a grand jury to take part in the investigation of an alleged intervention in the elections results.
Ahead in the session, traders will pay close attention to remarks from FOMC members Bullard and Kashkari in search for hints on the timing of the next interest rate hike, especially after Friday’s upbeat labor data increased speculation for a third rate move.
In this context, we could expect moderate positioning ahead of July’s inflation report and some profit taking pressuring again the dollar and creating a visible correction for the pair.
From a technical perspective, the Fibonacci pivot point stands at 110.75 and the first resistance is seen at 110.80. Immediate support is found at 110.70. In the hourly timeframe, indicators give a buy signal, although it’s not a strong one.
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