USDJPY Break 120.00 But Range-Bound Before NFP Release
The USD/JPY pair advanced modestly on Wednesday, managing to close the day above the 120.00 level. An early advance was contained around the 50% retracement on its last two weeks decline, still the level to break to confirm a stronger advance.
Anyway, the USD/JPY tends to remain range bound ahead of US Nonfarm Payroll data, which means little should be expected for this Thursday.
In the short term, the pair maintains a neutral-to-bearish tone, as in the 1 hour chart, the pair is also below its 100 and 200 SMAs, whilst the technical indicators are hovering around their mid-lines.
In the 4 hours chart, the technical picture supports a continued decline, as the moving averages extended their bearish slopes well above the current price, whilst the Momentum indicator is turning back south below its 100 level, and the RSI indicator hovers around 46. To confirm a more sustainable decline, the pair needs to break below 119.35, 61.8% retracement of the same rally.
Support levels: 119.80 119.35 118.90
Resistance levels: 120.35 120.60 121.00