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The U.S. NFP report will be out in a few hours!

Will the release drag USD/JPY down from a key technical zone?

Take a look at where it’s at on the 1-hour time frame!

USD/JPY: 1-hour

USD/JPY 1-Hour Forex Chart

USD/JPY 1-Hour Forex Chart by TradingView

I don’t know if you’ve read yesterday’s U.S. NFP trading guide but market geeks expect today’s release to show some slowdown in hiring AND in wage growth in December.

If yesterday’s stock and bond market moves are any clues though, investors are still pricing in higher interest rates and maybe a longer period of high interest rates from the Fed.

These hawkish expectations are reflected in USD/JPY’s climb from its 129.50 lows earlier this week to its current prices closer to 134.00.

But can USD bulls maintain their intraweek momentum?

USD/JPY is sitting at an area of interest that had served as support in early December and then resistance later that month.

As you can see on the 1-hour chart above, USD/JPY is no stranger to holding its ranges on the 1-hour time frame.

If today’s reports point to the Fed slowing down its rate hikes, USD/JPY could get rejected at 134.00 and could get dragged at its previous lows near 130.00.

Don’t discount a trend change though! Strong or steady-ish labor market numbers would support more monetary tightening in the U.S. This could bust USD/JPY above its resistance and push the pair to the 137.50 or 138.00 previous areas of interest.

Keep close tabs on USD/JPY’s average volatility and price reaction if you’re planning on trading today’s U.S. NFP report!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.