The US Dollar (USD) inched higher against the Japanese Yen (JPY) on Monday, increasing the price of USDJPY to more than 111.00 amid some key economic releases. The technical bias remains bullish because of a higher high in the recent upside move.
Technical Analysis
As of this writing, the USDJPY pair is being traded around 111.46. A hurdle may be noticed near 113.92, an immediate trendline resistance area ahead of 114.00, the psychological number and then 114.39, the high of the last major upside rally as demonstrated in the given below daily chart.
On the downside, a support may be seen near 109.26, an immediate trendline support area ahead of 107.97, the 50% fib level and then 107.55, another trendline support level as demonstrated with pink color in the above daily chart. The technical bias shall remain bullish as long as the 107.55 support level is intact.
US Nonfarm Payrolls
The U.S. dollar edged lower against a basket of peers on Friday, after data showed U.S. job growth slowed more than expected in July likely due to companies’ struggles to find qualified workers, and the unemployment rate declined, pointing to tightening labor market conditions.
Nonfarm payrolls increased by 157,0000 jobs last month, the Labor Department said on Friday. The economy created 59,000 more jobs in May and June than previously reported. The economy needs to create about 120,000 jobs per month to keep up with growth in the working-age population.
Trade Idea
Considering the overall technical and fundamental outlook, selling the USDJPY pair near current levels appears to be a good strategy in short to medium term.