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    USD/JPY well offered below 101.00, NFP data to provide fresh impetus Haresh Menghani

    Deteriorating investor risk appetite continues to drive safe-haven flows to the Japanese currency, with the USD/JPY pair now trading lower for fourth consecutive day. Currently trading just below 101.50, traders await for fresh impetus from today's release of monthly employment data from US. On Thursday, the pair did attempt a recovery back above 101.00 handle after the release of better-than-expected ADP report on US private sector employment. The recovery, however, was short-lived as tumbling crude oil prices on the back of a smaller-than-expected drawdown in US oil inventories, drove investors away from riskier assets and boosted demand for the perceived safety of the Japanese Yen.The pair's tepid reaction to Thursday's strong US economic data clearly indicates that markets remains worried over the uncertainty surrounding the economic implication of the historic Brexit referendum, which is causing risk-on / risk-off trade across various asset classes. Moving ahead, investors will now focus to one of the most economic indication from the US, monthly jobs report, popularly known as NFP. Consensus estimates are suggesting the report to show an addition of 175-180k new jobs during the month of June. One of the key focus area would be any revision to May's figure, which if revised upwardly could turn out to be highly supportive for the US Dollar.Technical levels to watchOn the immediate downside, 100.00 psychological mark remains immediate support to defend. Below 100.00 mark, the pair immediately drop back towards Brexit swing-lows support near 99.00 round figure mark. On the upside, momentum above 101.00 handle might continue to face strong resistance near 101.40-50 region and only a decisive strength above this immediate strong resistance would negate any further near-term bearish momentum and pave way for a move back above 102.00 level towards testing 102.50 horizontal resistance.


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