The greenback jumped to its 2-week high ahead of US jobs data this week. The US Non-farm Payrolls data is important to get clue about the Fed’s rate hike plan.
Market will be waiting for August US Non-Farm Payrolls, which will become the key indicator for the rate hike prospect, following hawkish statements from the Fed’s chairwoman, Janet Yellen and her associate, Stanley Fischer. Fischer reiterated that the central bank could raise the rate next month, following better US economic data recently.
Based on Reuters polls,economists expect that US economy added 180,000 jobs in August.
USD/JPY remains in upward trajectory, currently is testing intraday key resistance at 103.216. If the price managed to break the resistance, the pair possibly will continue the rally up to 103.564 and 103.953 in extension.
As alternative strategy, watch for bullish signal confirmation on a pull-back move to within the intraday support area at 102.653-102.304 with target at 102.868 and 103.216 in extension. Be very careful if the support 102.304 breaks because it will turn the intraday bias into bearish and possibly will push USD/JPY lower to 102.089-101.741.
– Buy on break of 103.216; S/L @ 102.850, T/P @ 103.564 or 103.953
– Buy on bulish signal confirmation within 102.653-102.304; S/L @ 102.200, T/P 102.868 or 103.216