USD/JPY recovers early lost ground to sub-109.00 level, fresh weekly lows
| • JPY continued benefitting from reviving safe-haven demand.
• A modest USD rebound helps rebound from weekly lows.
• Focus remains on NFP report, especially earnings growth.
The USD/JPY pair quickly reversed an early dip to sub-109.00 level and has managed to rebound around 20- pips from fresh weekly lows.
The pair extended its post-FOMC rejection slide from the key 110.00 psychological mark and weakened for the third consecutive session on Friday amid weaker trading sentiment around Asian equity markets, which was seen underpinning demand for the Japanese Yen's safe-haven appeal.
Further downside, however, remained limited as investors seemed reluctant to place aggressive bets ahead of today's important release of the keenly watched US monthly jobs report. Moreover, the US Dollar has also turned higher for the day and further collaborated to the pair's modest uptick from Asian session lows.
Apart from the headline NFP print, average hourly earnings data, expected to show a modest m-o-m growth of 0.2%, will be a key determinant of the USD price-dynamics and eventually influence the pair on the last trading day of the week.
Technical outlook
Omkar Godbole, Analyst and Editor at FXStreet writes, “the ascending trendline support stands at 108.65. A close below that level would indicate the corrective rally from the low of 104.63 has ended, although the bears are seen regaining control only below 106.88 (April 17 low).”
“On the higher side, a close above 110.04 (61.8 percent Fibonacci retracement of Jan-Mar sell-off) would allow a stronger rally to 110.84 (Nov. 27 low) and 111.48 (Jan. 18 high),” he added further.
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