USD/JPY waiting for NFP momentum

December 02, 2016 12:07

Whilst risk-off has prevailed in Equities this week ahead of the Italian Referendum, we are drawn to the NFP today to give us some insights into whether the US Fed will hike sooner rather than later. Despite this risk-off, the JPY has been weakening. Given ADP NFP signalling over 216k jobs added this month, a strong NFP above 200k may give the USD bulls another kick and help USD/JPY move forward to 115. But it wont be that easy in the case of bad NFP and Unemployment result. On a good NFP the USD/JPY might spike to 114.50 and 115.00. Bad NFP should tank the pair down to 113.35-00 POC ( L5, Bullish order blocks, ascending trendline). We need to observe the reaction then. 113.00 zone is the strong zone which might spike to pair even on a bad result.

However if the result comes a whole lot worse than expected (<100k) 112.50-00 can't be ruled out.

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