Japanese yen was the top loser of the Asian session, falling against its major counterparts on renewed risk appetite, following a surge in Tokyo stocks. Japan’s Nikkei index rallied about 4%, turning safe-haven yen into defensive mode.
Yen accelerated sharply lower against the US dollar in late Asian / early Europe trading, also losing ground against British pound.

The dollar / yen spiked to the session high at 102 zone, after six-day fall found ground on psychological / Fibo 76.4% 100.00 support, sidelining rising downside risk towards post-Brexit low at 98.98.
Last Friday’s strong upside surprise in US jobs data that came at 287K vs previous month’s downside shock at 38K (revised downside to 11K), did not result in more significant changes in the market.

Initial reaction after data were released pushed the greenback strongly higher against the basket of majors, but subsequent action pared all gains and Friday’s trading ended within pre US data release levels.
However, most of Asian currencies rallied on Monday on upbeat US jobs data, as risk sentiment improves, but Fed remains hesitant to raise interest rates.
Despite surge in job growth in June, as employers boosted hiring that gives strong signals that the economy is gaining speed in the second quarter, tepid wages and global turmoil after Britain’s vote to leave European Union, suggest that Fed will remain cautious and will probably not raise interest rates in the near future.

British pound steadies above fresh 31-year low, trading within narrow consolidation, after past three-weeks fall market pound’s worst performance since 1992 crisis. However, strong negative sentiment persists and downside risk remains in play for possible extension towards next significant support at 1.120 zone, as political and economic uncertainty after Britain’s vote to leave the EU, icreases after property sector was hit and BoE signaled rate cut. Strong bearish technicals support scenario of further downside extension of the British pound.
Spot Gold remains firm, despite strong US jobs numbers, maintaining its safe-haven appeal, as post-Brexit uncertainty deepens. The yellow metal consolidates above fresh over two-year high at $1375, which was retested in Asian session, as gold quickly regained ground after post-US data dip to $1335.
Another positive signal for gold’s further rise was generated by the sixth subsequent strong weekly bullish close on acceleration from $1199 to $1375.
Crude oil remains under strong pressure and keeps near-term focus shifted lower, following last Friday’s strong bearish daily and weekly close.
Oil price came under increased pressure after losing strong technical support at $45.80.
Oil prices came under pressure on global oversupply and signals of slowing economic growth in China. However, refiners that cut runs, struggling with fuel surplus, signaled that they can live with lower oil price, around $45 per barrel, but further easing of oil prices would likely bring oil producers into more difficult position.
Highlights of the day

Europe
European calendar is empty for the first day of the week, with Eurogroup meetings being the highlight
America

Canadian housing Starts for June is the highlight of American session, due at 12:30 GMT with forecast at 192K vs May’s 189K.
FOMC member George is due to speak at 14:00 GMT.
Important levels

USDJPY
The pair is the top performer of the session, accelerating from 100.50 to 102.00, session low, Strong bounce broke above initial 101.67 barrier, daily Tenkan-sen and eyes next pivot at 102.07, Fibo 61.8% of 103.37/99.97 downleg.
Daily close above 102.07 would generate strong bullish signal for further retracement of 103.37/99.97 downleg and open next barriers at 102.57, 103.00 and key near-term resistance at 103.37.
Broken Tenkan-sen line marks initial support at 101.67, followed by 101.25 and 101.00.

US Crude Oil
Oil price remains under pressure in early Monday’s trading and retested last Friday’s low at $44.76, signaling further downside, as technical studies are negative.
Break below $44.76 handle would open $44.23 and $44.00, with next good supports laying at $43.61/44.
Initial resistance lies at $45.27, followed by strong $45.80/90 zone, former strong support and breakpoint, which is seen capping upside attempts for now.

EURUSD
The Euro is focusing 1.1000 support on fresh pressure in early European trading, after Friday’s wide range action left long-legged Doji candle, signaling initial indecision.
Firmly bearish technicals favor final break below psychological 1.1000 support, to trigger further retracement of 1.0909/1.1185 recovery leg. Next supports lay at 1.0970, below which would open way towards key near-term support at 1.0909, post-Brexit low.
Initial resistance lies at 1.1055, followed by 1.1092 and 1.1120.

GBPUSD

Cable trades for the third consecutive day within narrow consolidation range above fresh 31-year low at 1.2795. The action is seen as consolidation of very strong fall that would likely precede fresh leg lower, as overall sentiment and technical studies are negative.
Consolidation floor at 1.2874 marks initial support, guarding key 1.2795 handle, loss of which would signal resumption of larger downmove, towards next supports at 1.2705, and 1.2450, in extension.
Psychological 1.3000 zone marks initial resistance, followed by 1.3045, and more significant daily Tenkan-sen line at 1.3163., Market Analysis