FxWirePro: USD/JPY consolidates previous session's gains, NFP data eyed for further impetus

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading largely unchanged at 140.17 at around 04:25 GMT, consolidates previous session's gains

Previous Week's High/ Low: 137.70/ 135.80

Previous Session's High/ Low: 140.22/ 138.83

Fundamental Overview:

Recession-related concerns were exacerbated by China announcing coronavirus lockdown in the city of Chengdu.

US dollar surged, helped by upbeat data and the dismal market mood. DXY closed 0.87% higher on Thursday.

On the data front, US ISM Manufacturing PMI reprinted the 52.8 figure for August versus the market expectations of 52.0. 

Further, the final reading of S&P Manufacturing PMI for August rose past 51.3 initial estimates to 51.5, versus 52.2 prior final for July

US Initial Jobless Claims dropped to 232K versus 248K forecast and 237K prior. 

Unit Labor Cost rose 10.2% QoQ during the second quarter (Q2) versus 10.7% expected while Labor Productivity dropped by 4.1% during Q2 versus the anticipated fall of 4.5% and -4.6% prior.

Focus now on US Nonfarm Payrolls (NFP) and Unemployment Rate for August, expected 300K and 3.5% versus 528K and 3.5% respective priors.

Technical Analysis:

- GMMA indicator shows major and minor trend are strongly bullish

- Momentum is bullish, Stochs and RSI are in highly overbought levels

- Pullbacks have bounced off cloud support, weakness only on break below

- MACD and ADX support upside in the pair

Major Support and Resistance Levels:

Support - 139.36 (5-DMA), Resistance - 140.85 (Upper BB)

Summary: USD/JPY trades with a bullish bias. Scope for test of fresh multi-year highs above 140 handle.