USD/JPY deflates from highs, back near 103.00

The greenback has lost part of its earlier shine vs. the Japanese currency, now dragging USD/JPY back to the 103.00 neighbourhood ahead of NFP.

USD/JPY unchanged near 103.00

The pair is keeping the area around yesterday’s close near 103.00 the figure, coming down from tops in the vicinity of the 103.40 region seen during overnight trade.

In the meantime, the pair is struggling to revert three consecutive sessions with losses today, so far consolidating in the area of 4-week lows after climbing as high as the mid-105.00s in late October.

Ahead in the session, the US economy is expected to have created more than 170K jobs during last month, adding to the already good health of the US labour market and reinforcing the case for higher rates by year-end.

In addition, market participants will closely follow scheduled speeches by Atlanta Fed D.Lockhart (2018 voter, centrist), L.Brainard (permanent voter, dovish), Dallas Fed R. Kaplan (2017 voter, neutral), Minneapolis Fed N.Kashkari (2017 voter, neutral) and S.Fischer (permanent voter, hawkish), particularly after the recent ‘on hold’ stance by the FOMC.

USD/JPY levels to consider

As of writing the pair is losing 0.04% at 102.94 facing the immediate support at 102.66 (55-day sma) would open the door to 102.54 (low Nov.3) and then 101.18 (low Sep.7). On the other hand, a break above 103.96 (20-day sma) would aim for 105.55 (high Oct.28) and finally 106.63 (200-day sma).

To learn more about this topic, check our video analysis.