Disappointing US economic data were the reason of the greenback’s weakening against the Japanese yen. US economy only added 38,000 jobs in May, which was way below market expectation at 162,000 addition. This data pushed down the sentiment of rate hike in June. 

The probability of rate hike in June was 21%, but after the disappointing US Non-Farm Payrolls data the probability fell ti 6%. As for July rate hike, the probability fell to 47% from 58%. 

Japan Cabinet Secretary, Yoshihide Suga said that if necessary, a move will be taken in order to ease speculative movement in money market. Mr. Suga also said that stability in money market is very important.

A pull-back move has occurred to resistance area at 107.686 (50% Fibonacci). Hourly stochastic has crossed down and CCI is heading south, falling from its overbought area. 50 MA is still falling and 20 MA remains below it. It is very possible we will see a bearish move today, with target at 109.986-106.359. 

However, be careful if the price managed to break above 107.686 because it will turn the intraday bias to bullish and possibly will push USD/JPY higher to 108.446-109.014. 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.