Global macro overview for 06/06/2017:
Despite weaker-than-expected job growth in the US last month, the broad outlook still remains positive and healthy. Today's Job Openings & Turnover Survey data that are scheduled for release at 02:00 pm GMT might bring another evidence to support this assumption. Market participants expect, that a survey done by the United States Bureau of Labor Statistics to help measure job vacancies will deliver 5,650k jobs, which would be only 93k fewer than a 5,743k gain of last month. This estimate is still close to the best level since the August last year and it is a sign that the near-term trend is still on track to remain healthy. In conclusion, all of the three well-known job market surveys, ADP, NFP Payrolls, and JOLTs Job Openings, are still indicating a high level of performance of the US job market. It seems that the much more important measure in the job market is a steady pace of wage growth, which is resilient to rising inflationary pressures and is not accelerating fast enough. Because of this situation, the Federal Reserve might pause the interest rate hike after the March meeting and go back to the wait-and-see approach, which means the US Dollar will eventually drop even lower, towards the levels not seen since the beginning of Trump's administration.
Let's now take a look at the USD/JPY technical picture on the H4 time frame. The price has just found the support at the level of 109.57 after an impulsive drop from the level of 110.22. In case a sell-off continues, the next technical support will be seen at the level of 108.47. The next technical resistance is seen at the level of 110.22.
