USD/JPY is near unchanged levels close to the 110.00 handle currently
And it is unlikely that the pair will break free of levels close to the 110.00 handle ahead of the US non-farm payrolls release, barring any major headlines on the coronavirus outbreak.
The pair is still trading largely based off the risk mood as we near the end of the week, and price action is centering around the 110.00 level for now. Just take note that there are large expiries also seen at the level, adding to the "stickiness" today.
Looking ahead today, I don't think the US jobs data will matter all too much in the grand scheme of things - similar to last month.
Sure, it may give the dollar a bit of a nudge or two but unless we see payrolls crater, the unemployment rate shoot higher, and wages disappoint, it is hard to imagine a major reaction in the market to the report. It is all about avoiding a hiccup.
Because steady job numbers and wages would keep the situation at the Fed exactly the way it is and with coronavirus concerns still ongoing, that won't allow the Fed to tilt towards hiking rates any time soon - especially with inflation still subdued.
For USD/JPY, there is some technical risk though with the January highs around 110.20-30 one to watch before further resistance is seen around 110.50.
Meanwhile, any downside pressure will meet support around 109.50 before we move to the key hourly moving averages at 109.40 and 109.15 seen currently.
