USD/JPY dead flat at 124.75, eyes set on NFP

FXStreet (Mumbai) - The US dollar appears to have lost ground somewhat versus the Japanese in the mid-European session, with USD/JPY heading towards lows, traders' attention now centres on the macro event of the week - US non-farm payrolls data.

USD/JPY moves to be directed by NFP

Currently, the USD/JPY pair trades flat at 124.72, finally turning in the red just couple of hours away from the key data release. The dollar-yen pair continued to gradually slide towards lows at 124.68 as traders switched to the side-lines heading into the main highlight, the US NFP.

The NFP data is closely watched and has major significance as the Fed takes into NFP as one of the main employment indicators for assessing the future course of monetary policy outlook.

Earlier today, BOJ unchanged monetary policy decision followed by Kuroda’s presser had virtually no impact on the USD/JPY pair, keeping it below 125 handle.

Looking ahead, markets now shift focus towards the US payrolls due later in the New York session. NFP are expected to post 225,000 growth for July, unchanged from 223,000 in June.

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USD/JPY Technical Levels

To the upside, the next resistance is located 125.03 (Aug 5 High) levels and above which it could extend gains 125.69 (June 8 High) levels. To the downside immediate support might be located at 124.32 (June 5 Low) below that at 124 levels.

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