Instrument: USDJPY
Bullish Preference:
Buy position is envisaged if price trades above 143.580 with take profit at 143.898.
Bearish Preference:
Sell position is envisaged if price trades below 143.102 with take profit at 142.833.
Fundamentals:
USD
1:30 PM Average Hourly Earnings m/m
1:30 PM Non-Farm Employment Change
1:30 PM Unemployment Rate
Comment:
The Japanese yen found some bids after Japanese wages rose significantly more than expected, lowering the hurdle for the Bank of Japan to tweak its ultra-loose monetary policy. Japanese workers’ wages rose 2.5% in May Vs 1.2% expected, and 1.0% in April, reflecting the major labour unions’ wage negotiations this spring that resulted in the biggest increase in pay increase in decades. On technical charts, USD/JPY has moved to a consolidation phase within the broader bullish phase recently, as the colour-coded candlestick charts show. There is quite strong converged support on the 89-period moving average and the lower edge of the Ichimoku cloud on the 4-hourly charts. This cushion is strong as it triggered a rebound in USD/JPY last month.
Analysis: SCRUM Team
