USD/JPY: eyes on a break of 108.50 to open a break of 105 on the wide

• USD/JPY: eyes now turn back to trade while the dollar remains on top.
• USD/JPY: 109 handle remains fragile and risk is towards the downside. 

USD/JPY is below the 109 handle, pressured in Tokyo after a sleepy start in Australasia with the Aussies out for labour day. Currently, USD/JPY is trading at 108.93 with a high of 109.20 and a low of 108.90.

A fresh low was scored on the NFP headline and AHE headline miss at 108.64. However, the details behind the headlines were more positive. Risk rallied and the pair flipped over to make a high of 109.27. There was a drift lower to 109 the figure for the close, (10-D SMA at 109.05). The price is below 109.30 Tenkan to start the week/bearish. Markets now turn to Japan returning and BoJ minutes at the start of the week.

Eyes to turn back to US trade relations

We have a number of key events of late to define the trend and those were the FOMC, non-farm payrolls and series of key data and with the bulk of earnings done, stock markets and risk will likely focus back to trade relationships between the US and China in the main, although NAFTA still is hanging in the balance as well.  However, for the immediate term, the BoJ is in focus and the minutes were released as follows:

BOJ Minutes: Should maintain easy policy as still long way to go to hit price goal

USD/JPY levels

In the 4  hours chart, the price moved closer to a bullish 100 SMA, currently at 108.40, while technical indicators have resumed their declines after a short-term period of consolidating within negative levels, skewing the risk toward the downside. 108.50 level opens risk towards the 50-D SMA before the 2018 low at 104.63 as a key support. 104.20 gives way to a downside measured target of 102.58, guarding a run to 101.19/99.00 as the June-to-November 2016 lows ahead of 100.70/99.00.