USD/JPY finds resistance at 103.85

By FXstreet.com | Updated August 28, 2014 AAA

FXStreet (Córdoba) - The USD/JPY lost bullish momentum above 103.80 and pulled back modestly. After the release of US data the pair rose to 103.85 but failed to consolidate above 103.80.

Currently trades at 103.75, 0.10% down for the day so far, headed toward the second daily loss in a row, retreating further after hitting on Monday the strongtes level since January at 104.25.

USD/JPY outlook ahead of key data

Next week important economic data from the US will be release, including the employment report, that could have an impact on the pair. “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 breach that 104.00 resistance level and advance toward 105.00”, said the Markets Research Team from the Bank of Tokyo Mitsubishi.

According to them an escalation in the Russia/Ukraine crisis could favor the Yen. “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”.

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