US NFP :USDJPY rejected @ 114.90 level 4 times, may be 5th time?
Dollar had a longest winning streak in an year's time against yen. Looking both at fundamentals and Technicals pair is in corrective structure since Jan 2017. We believe that US$ will break upwards unless real risk aversion mode prevails market. Such an event is right on the tap, none other but US Non-farm payrolls report, tomorrow.
If we look at Jan 2017 labor department report, highlighted in red on the chart, right after the december rate hike. Inflation element of report was poor. Market was expecting .3% increase in avg hourly earnings. Not only report missed it and printed .1% increase but adding insult to the injury previous month .4% increase in avg hourly earnings was revised down to .2%.
In last one year US has generated on average 185K job/month. Market expects the 200K a bit above than median average. But as we mentioned the most important element of tomorrow's NFP would be avg-hourly earnings. If missed, market definitely wouldn't like it 3rd time and dollar bulls may have to hold their reins.
WAIT AND SEE IS BEST THE STRATEGY.....
If we look at Jan 2017 labor department report, highlighted in red on the chart, right after the december rate hike. Inflation element of report was poor. Market was expecting .3% increase in avg hourly earnings. Not only report missed it and printed .1% increase but adding insult to the injury previous month .4% increase in avg hourly earnings was revised down to .2%.
In last one year US has generated on average 185K job/month. Market expects the 200K a bit above than median average. But as we mentioned the most important element of tomorrow's NFP would be avg-hourly earnings. If missed, market definitely wouldn't like it 3rd time and dollar bulls may have to hold their reins.
WAIT AND SEE IS BEST THE STRATEGY.....