FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair was already on demand ahead of the US employment report release, having started the day above its 100 and 200 DMAs for the first time since late August, and got fueled by the strong readings, supportive of a US rate hike for next December.
Key Quotes:
"From a technical perspective, the daily chart shows that, despite having advanced above the mentioned moving averages, these last lack directional strength, still flat and in a 20 pips range. The technical indicators, however, present a strong upward momentum in overbought territory, in line with a continued advance."
"Shorter term, the 4 hours chart shows that the technical indicators have lost their upward strength and turned lower, but that they are still in extreme overbought levels. Given the limited retracement from the high and the tight consolidation near it, the risk remains towards the upside, with the market now targeting the year's high at 125.80."
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