FxWirePro: USD/JPY Trades a Narrow Range, Holds Gains Above the 107 Handle

FxWirePro: USD/JPY Trades a Narrow Range, Holds Gains Above the 107 Handle

• USD/JPY has been trading a thin range in the Asian session, with day's highs at 107.20 and lows at 106.88. 
• The pair has been recovering from fresh 18-month lows at 105.54 (3rd May), but upside lacks momentum. 
• Disappointing China April Caixin Service PMI which came in at 51.8 (prior 52.2) & Composite at 50.8 (prior 51.3) likely to keep risk-off alive. 
• Markets nervous as we head closer towards the US payrolls release and aslo weaker global equities also keep the safe-haven demand for the yen underpinned. 
• Supports for the pair are seen at 106.67 (5-DMA), 106.27 (Apr 29th lows) and then 106.13 (May 2nd lows). 
• Resistance on the upside is located at 107.46 (May 4th highs), 108 and 108.20 (Apr 29th highs). 
• Techs are inconclusive we would prefer to remain on the sidelines for now. 
• Focus will be on U.S. weekly jobless claims and building permits data due later today.  
• Besides, Fed official Bullard’s speech will be closely heard for fresh insights on the US interest rates outlook. 
  

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