USD/JPY: bulls struggle at 104 handle despite poor nonfarm payrolls

USD/JPY breached the 104 handle last week within the mayhem surrounding the nonfarm payrolls disappointment, but has since settled and consolidates below the 103.40 mark.

The yen has recently found a bid in response to concerns that BoJ policy action may be reaching the end of the road, as analysts at Rabobank explained. However, the BoJ is still very much in play this month and keeping markets on their toes.

"BOJ's Governor Kuroda in a speech entitled the Comprehensive Assessment of monetary policy, outlined the negative impact of cutting interest rates below zero. Despite he also remarked that the Central Bank is willing to proceed anyway, speculation over further rate cuts eased, helping lift the yen," explained Valeria Bednarik, chief analyst at FXStreet, adding," The BOJ will have its economic policy meeting next September 21st, while the US Federal Reserve will meet on September 16-17th." Meanwhile, despite the nonfarm payrolls move, the dollar remains in a net bullish position but has been declining according to the recent IMM report with overall USD longs a little lower last week following the Jackson Hole event. "US longs are currently at their lowest level since mid-July," noted the analysts. 

IMM net speculators? positioning as at?30 August 2016 - Rabobank

USD/JPY levels

"In the 4 hours chart, indicators are hovering around their mid-lines, while the price remains well above the 100 and 200 SMAs," explained Valeria Bednarik, chief analyst at FXStreet. Meanwhile with spot trading at 103.49, we can see next resistance ahead at 103.57 (Daily Classic PP), 103.57 (Daily High), 103.99 (Daily Classic R1), 104.02 (Monthly High) and 104.02 (Weekly High). Support below can be found at 103.45 (Hourly 20 EMA), 103.44 (Daily Open), 103.40 (Hourly 100 SMA), 103.37 (Weekly Classic PP) and 103.37 (Daily Low).