USD / JPY
The dollar rose in all areas after US employment data turned out better than the markets feared the results in April. Non-farm payrolls and unemployment fell below horrific forecasts (which showed that expectations for the worst job situation since the Great Depression) and average wages far exceeded consensus. USDJPY has jumped from its new seven-week lows at 105.98 (6/7 May lows) and is currently testing a solid barrier at 106.70 (daily cloud base / 10DMA). A firm break above the pivot of 106.70 would place larger bears (bear-leg from the highest of March 24 at 111.71) for a stronger recovery, because the bears were rejected twice (game / sea ) at 105.98. Adding positive signals would be a strong bullish close today that will begin to form a reversal pattern and also signal the formation of a bear trap on the weekly chart. The extension of recovery in the daily cloud would face obstacles at 107.15 (20DMA), 107.51 (30DMA) which guarantee a key barrier at 107.88 (top of the daily cloud).
Res: 106.92; 107.15; 107.51; 107.88
Supper: 106.44; 105.98; 105.20; 105.00