6 Mar 2015
USD/JPY extends recovery to 120.15; battle between 120/121 expiries
FXStreet (San Francisco) - The USD/JPY is trading in recovery mode after falling from Thursday's highs at 120.40 to find support at today's lows at 119.90. The pair is now trading slightly higher at 120.15, in the middle of a expiries fight.
Currently, USD/JPY is trading at 120.11, down 0.03% on the day, having posted a daily high at 120.21 and low at 119.90. USD/JPY spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
The USD/JPY battle
The USD/JPY is struggling to post its second positive day in row; however, the real battle is regarding to Friday's option expiries. There are a bunch of expiries from below 119.00 to 121.00. But the two most bigger packages are around 120.00/50 for 3.8B, and 121.00/20 for 3.27B.
To the downside, there are expiries at 118.70 for 1.1B and around 119.00/50 for 1.3B. But it looks like the upside will exercise more pressure to the pair.
Non Farm Payrolls
Today's nonfarm payrolls is expected to show that the US created around 240K new jobs in February while the unemployment rate is expected to fall to 5.6% again.
However, as FXStreet chief analyst commented in a recent report: "an upbeat NFP number will push the pair higher "with some sustainable gains above 120.47 favoring a stronger upward continuation, with the 121.00 figure as the immediate bullish target, and a break above it favoring an extension towards the mentioned multiyear high at 121.84."
But if the report is weaker than expected, the USD/JPY will see the 119.40 as the "most relevant support" before the "critical 100 DMA at 118.50."
Levels
As for technical levels, the USD/JPY will find next resistances at 120.25, 120.40 and 120.50. To the downside, 119.90, 119.75 and 119.40 are supports.
Currently, USD/JPY is trading at 120.11, down 0.03% on the day, having posted a daily high at 120.21 and low at 119.90. USD/JPY spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish.
The USD/JPY battle
The USD/JPY is struggling to post its second positive day in row; however, the real battle is regarding to Friday's option expiries. There are a bunch of expiries from below 119.00 to 121.00. But the two most bigger packages are around 120.00/50 for 3.8B, and 121.00/20 for 3.27B.
To the downside, there are expiries at 118.70 for 1.1B and around 119.00/50 for 1.3B. But it looks like the upside will exercise more pressure to the pair.
Non Farm Payrolls
Today's nonfarm payrolls is expected to show that the US created around 240K new jobs in February while the unemployment rate is expected to fall to 5.6% again.
However, as FXStreet chief analyst commented in a recent report: "an upbeat NFP number will push the pair higher "with some sustainable gains above 120.47 favoring a stronger upward continuation, with the 121.00 figure as the immediate bullish target, and a break above it favoring an extension towards the mentioned multiyear high at 121.84."
But if the report is weaker than expected, the USD/JPY will see the 119.40 as the "most relevant support" before the "critical 100 DMA at 118.50."
Levels
As for technical levels, the USD/JPY will find next resistances at 120.25, 120.40 and 120.50. To the downside, 119.90, 119.75 and 119.40 are supports.