Colombian journalist and Forex's technical and fundamental analyst since 2010. His articles has been featured in several media outlets.

Fundamental Outlook: US NFP and USD/JPY

The countdown is still on and there are expectations of a possible rate hike during next Fed meeting at United States, but for today, the attention will shift to the Non-Farm Payrolls, which will be released at 12:30 GMT and it's expected to add 164,000 jobs approximately for the May's reading. Also, unemployment rate could have a little decline from 5% to 4,9%. During yesterday's session at 12:15 were published the ADP Non-Farm Employment Change, which has a increase by 173,000 jobs during May.

With that perspective, the odds are in the positive side in terms for US economy, previous to the Fed's june meeting, but due to volatility that was triggered yesterday in Forex markets, US Dollar won't have major moves if a positive reading happens. The technical picture at USD/JPY H4 chart is showing a bearish picture, as the pair is hovering around the 200 SMA. If there is better-than-expected release, pair may break the resistance level of 109.29, to test the 50 SMA. In a bearish scenario, it could break the 108.52 zone to extend the decline toward 108.00 psychological level (strong support during mid-april).

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