- MUFG (based on FXStreet)
The US Dollar's losses slightly exceeded expectations, as the pair stabilised at 122.59, rather than in front of the weekly PP at 122.74. Nevertheless, the USD/JPY is now facing a rather strong support cluster around 122.30, represented by the monthly PP, the weekly S1 and the . The pair's exchange rate still has a 20-pip space to edge down, or even breach the immediate support cluster in case the Payrolls data disappoints too much; but the base case scenario is a rally towards the 20-day and a possible retest of the weekly R1 at 123.22.
market sentiment remains unchanged at 71%, whereas the number of purchase orders slightly dropped, from 68 to 65%.