COZforex: On Friday, the USD strengthened 0.88% against the JPY and closed at 99.04, buoyed by a strong growth in the domestic non-farm payrolls data.

In the Asian session, the pair is trading at 99.01, with the USD trading slightly lower from Fridayís close. Earlier today, a report from Japan showed that the nationís trade deficit on BOP basis narrowed to •874.8 billion in September, from a deficit of •885.9 billion registered in the previous month. Meanwhile, the Bank of Japan reported that bank lending in the nation rose 2.0% in October, following a similar rate of rise witnessed in September.

Demand for the dollar continued to be underpinned after official data on Friday showed that the US economy added 204,000 jobs in October, significantly higher than the 125,000 expected by economists. The report came on the heels of data showing that the US economy expanded by a larger-than-forecast 2.8% in the third quarter.

The upbeat data indicated that the US economy shrugged off the impact of the government shutdown and raised the possibility that the Federal Reserve may start winding down its USD85 billion-a-month asset purchase program as soon as its next monthly meeting in December.

In technical analysis, COZFX strategist Nigel Boynton said, USD/JPY is predicted to find support at 98.24 and a drop through could take it to the next support line of 97.47. Meanwhile, the pair is predicted to find its first resistance at 99.51, and a rise through could take it to the next resistance line of 100.01.

Later today, investors look forward to the release of a report on the eco watchers survey by the Japan Cabinet Office. Also, later today, the Ministry of economy, trade and industry of Japan is expected to release a report on the nationís tertiary industry index, which is widely expected to rise 0.2% in September, following a 0.7% rise seen in August.


(COZ forex UK)