USD/JPY revisits confluence of key tech levels

The Bid tone around JPY strengthened in Asian in line with the risk-off in the equities, thus pushing the USD/JPY pair back to 102.80; a level which marks the confluence of 23.6% fib retracement of Oct rally and 100-DMA, 50-DMA.

Focus on US wage growth and non-farm payrolls

The US October wage growth numbers and non-farm payrolls figure is due for release later today. NFP is likely to take a back seat as the Fed intends to see sustained labor market gains translate into higher wages.

Ahead of the data release, the pair remains at the mercy of the sentiment in the equity markets. Asian equities are trading risk-off after S&P clocked its longest losing streak since 2008.

The spot clocked a high of 103.21 earlier today before deflating to 102.83. The pair was last seen trading around 102.94 levels.

USD/JPY Technical Levels

Breakdown of the confluence of key levels around 102.80 as noted above would open doors for a slide to 102.16 (61.8% of Oct rally), under which a major support is seen at 101.20 (Sep 7 low). On the higher side, breach of 103.45 (previous day’s high + 38.2% of Oct rally) could yield a test of 5-DMA of 103.64, above which the 10-DMA hurdle of 104.12 stands exposed.