US labor market only added 160,000 jobs in April, which is the smallest gain in the last seven months. The data reflects that the labor market is weakening and it is doubtful that the Federal Reserve will raise the rate before the end of 2016.

Unemployment rate remains at 5.0%, in line with expectation. Meanwhile, hourly wage was up 0.3% in April compared to the previous month. If compared with April 2015, average hourly wage is up 2.5% but remains below 3%, which according to economists it could bring inflation towards the Fed’s target at 2.0%.

USDJPY 6 MAY 2016 FOREX.TODAY

A pull-back move has occurred to within the Fibonacci support area at 106.289-106.748. Note that the price has fallen to below 20 MA and 50 MA on hourly chart. However, as long as the support at 106.289 remains intact, rebound is possible with 107.033 as target and 106.492 in  extension. Moreover, hourly stochastic has crossed up and CCI is oversold.

Nevertheless, be careful if the price managed to break the support at 106.289 because it will turn the intraday bias to bearish and possibly will be followed by deeper bearish move to 105.962-105.545. In that case, the bullish scenario mentioned above possibly will fail.

One thought on “USD/JPY Possibly Rebound If Support Holds Out; May 6, 2016”

  1. Daniel Chan - Forex.Today says:

    Thanks Eko very helpful analysis

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