USD/JPY defends 50-day MA support as S&P 500 futures trim losses

• USD/JPY bounces off 50-day MA support, retains bullish outlook as S&P 500 futures trim losses.
• All eyes on the NFP figure and wage growth number.

The USD/JPY pair bounced off the 50-day moving average support of 107.02, tracking the recovery in the US equity index futures.

 The Dow futures had dropped close to 350 points earlier today as Trump's retaliatory tariffs boosted fears of a full-fledged trade war. However, a significant majority believes the aggressive posture is a negotiating tactic and both parties will eventually negotiate their way to a win-win deal.

This seems to have put a floor under the futures. Currently, the Down futures are flashing 280 point drop. The recovery has helped the USD/JPY pair defend the key support of 107.00.

 As of writing, the pair is trading at 107.20 - well above the inverse head-and-shoulders neckline support (former resistance) of 107.00. So, the pair remains in the bullish territory and could rise to 107.91 (Feb. 21 high) if the US non-farm payrolls and wage growth figure, due at 18:00 GMT today, beat estimates.

USD/JPY Technical Levels

A clear break above 107.49 (Previous day's high) would open doors for 107.91 (Feb. 21 high) and 108.28 (Jan. 26 low). On the other hand, acceptance below 107.00 (H&S neckline support) could yield a pullback to 106.41 (10-day MA) and 105.66 (April 2 low).