Forex: USD/JPY backs away from highs, contained by 78.60

FXstreet.com (Córdoba) - The rally of the dollar against the yen, which was triggered by a positive non-farm payrolls report, stalled at the 78.85 area, where USDJPY printed a 2-week high before finding sellers.

However, with the subsequent dip being contained by the 78.60 area, the pair was confined to a slim consolidation range within the last hours. At time of writing, USDJPY is trading at the 78.65/70 zone, still up 0.2% on the day.

From a technical view, "As the initial support at 78.71 has been cleared, next one comes at 78.56, today's intraday high / 10 day EMA, ahead of more important 78.30 higher base, where dips should be contained in order to keep near-term bulls in play", says Slobodan Drvenica, analyst at Windsor Brokers Ltd. "Increased downside risk is seen on slide below 78.30 and strong 78.00 zone, previous low / Fib 61.8% of 77.42/78.86 and psychological support that would signal lower top and re-attract the downside levels".