USD/JPY to see profit-taking ahead of Powell's critical speech – OCBC

The USD/JPY extension persists, after closing above 107.00 on Wednesday. However, the extension is looking stretched, and longs may want to take profits ahead of Fed Chair Powell's speech (17:05 GMT) and Nonfarm Payrolls figure on Friday, Terence Wu, FX Strategist at OCBC Bank, briefs.

Key quotes

“The USD/JPY close above 107.00 will give courage to the bulls to push for the 107.50/80 mark, although that may be a bridge too far ahead of the risk events into the end of the week (Powell’s speech and NFP).”

“Stretched technicals provide arguments to take profit on longs, before re-entering at better levels.”

“Support at 106.80 for now.”