USDJPY Chart Technical Outlook jumps on strong US employment, risk aversion, bulls aim for 157.40 and 157.95.
US Nonfarm Payrolls figures beat expectations on Friday, following a batch of soft employment figures earlier on the week, and ditched hopes of a September rate cut.
The data sent the US Dollar higher across the board ahead of a key Federal Reserve meeting this week. The bank will release its dot plot and is widely expected to dial back the three rate cut projections released at its March meeting. This will keep US Dollar downside attempts limited.
In Japan, the GDP showed that the economy shrunk in Q1, although slightly less than expected. The BoJ is meeting this week and might give further clues about their forward guidance.
The technical picture shows the USD in a bullish trend. Friday’s strong rebound suggests that the pair might be in the C-D leg of a butterfly pattern. The next resistances are 157.40 and 157.95. The pattern’s target is the channel top near 159.00. Supports are 156.50 and 155.35.
