- USD/JPY edges lower for the second consecutive session on Friday.
- The near-term technical set-up remains in favour of bearish traders.
The USD/JPY pair extended the overnight rejection slide from the 109.00 handle and remained under some selling pressure for the second consecutive session on Friday.
The pair has now slipped back to challenge an important confluence support near mid-108.00s, which comprises of 50-day SMA and a one-month-old ascending trend-line.
The mentioned confluence region should act as a key pivotal point and should help determine the pair’s near-term trajectory amid persistent US-China trade uncertainty.
The pair’s inability to capitalize on this week’s attempted recovery and failure to find acceptance above the very important 200-day SMA now seems to favour bearish traders.
However, it will be prudent to wait for a sustained break through the said support before placing any aggressive bearish bets ahead of the release of the US monthly jobs report.
Below the mid-108.00s support zone, the pair is likely to accelerate the slide further towards the 108.00 handle before eventually dropping to 100-day SMA support near the 107.80 region.
On the flip side, bulls are likely to wait for a sustained strength beyond the 109.00 handle before positioning for a move towards the 109.70-75 region – recent swing high.
USD/JPY daily chart
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