USD/JPY: downside plays out in two-mind markets post NFP

USD/JPY is offered in the opening hour of Tokyo with the yen benefiting again form short dollar positions after last week's disappointments in the nonfarm payrolls data. 

USD/JPY has dropped below the 104 handle and trades below the support of 103.80 as markets get short of the greenback with September off the table as timing for a Fed hike. However, the divergence between Central Banks is quickly absorbed despite the mis and still leave investors in the dollar on such a notion, hence the pullback after last week's NFP miss. Meanwhile, the BoJ is in play this month which is also a damper for Yen bulls.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that according to the "4 hours chart, the upward potential seems limited, as the Momentum indicator diverges from price's action, heading lower within positive territory, while the RSI indicator consolidates around 70." Adding, "In this last time frame, the price is well above its 100 and 200 SMAs, but the shorter remains well below the largest, not enough at this point to support an upward continuation."