• Renewed bout of risk-aversion in the markets after the Chinese services PMI deteriorated in May, reinforced China slowdown fears and supported Yen buying. 
     
  • USD/JPY attempted recovery from fresh 3-week low of 108.52 hit on Thursday, but was rejected above 109 handle.
     
  • Bias lower, but markets remains wary and refrain from placing big bets on the USD/JPY pair heading to the US NFP release due later today.
     
  • The pair is trading a narrow range, with day's high at 109.13 and low at 108.74.
     
  • The US data has been very mixed, but Fed speakers continue to remain upbeat on Q2 performances.
     
  • The next directional move with depend on how the market understands US employment data, ADP was as expected. 
     
  • Our previous call (http://www.econotimes.com/FxWirePro-Yen-buying-dominates-amid-risk-off-USD-JPY-hit-fresh-2-week-lows-good-to-sell-rallies-216139) has achieved TP1.

Recommendation exiting trade at lows, markets to remain volatile into NFP.
 

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