USD/JPY had found support at 110.10 after breaking below the support of 112.50. As of Friday, Non-Farm Employment Change showing the negative figure of 98k which was expected to be at 174k but positive Unemployment Rate at 4.5% which was expected to be at 4.7% helped USD to gain strength over the JPY and gave the price a boost towards the upper resistance. Today JPY had Current Account report published in the morning with positive value of 2.21T which was expected to be at 1.79T but Economy Watchers Sentiment was negative at 47.4 which was expected to be at 49.8. On the other hand, USD has Labor Market Conditions report to be published today along with FED Chair Yellen speaking about short-term interest rate change and future monetary policies. A good amount of volatility is expected during the speech in this pair today.
Now let us look at the technical view, price is currently being respected by the dynamic resistance of 20 EMA though the price has bounced off from the support area of 110.10-75. Currently, as of 20 EMA holding the price from upside we are in bearish bias until the price breaks above 112.50 with a daily close. If price breaks below the lowest support 110.10 level, it is expected that the price will move much lower towards 105.50 and a daily close above 112.50 will negate our bearish bias and we will be looking forward for an upward target towards 114.60.
