USD/JPY – BULLISH BIAS – (103.00-105.00).
The US economic recovery and the recent spike higher in US short-term yields helped support USD/JPY buying. However the momentum quickly faded as we approached the 104-level, suggesting tough resistance.
Next week, the expectation for labor market recovery in non-farm payroll report may support USD/JPY buying. If strong employment growth is confirmed then USD/JPY may stay above that 104.00 resistance level and advance toward 105.00.
While we are happy to be bullish for the week ahead, the escalation of the Russia/Ukraine crisis again today is reason for caution. Risk-off factors have not always influenced USD/JPY of late but that’s perhaps more the case at 102.00 rather than at 104.00. At higher levels we may well see greater sensitivity to events in Russia.
BTMU