USD/JPY has been offered on a weak dollar and the downside is compelling still with Tokyo selling at the open.

Markets in general are a wild ride and the Yen benefits in risk-off, but this is more about the dollar unwinding, that came without much of a signal this week instigated in spurts of supply as markets start to out-price immediate rate hike from the Fed who may well need to hold out and continue assessing the economy to understand whether hiking interest rates was the right thing to do at the right time of doing so. Conditions are seemingly looking a lot less appropriate for normalizing monetary policy, but the dollar's weakness will be welcomed in the meantime in the game of currency wars. Lower oil and inflation in a global concern for Central Bankers and neither the US nor Japan are immune to the affects China is having on a world-wide market scale.

The main event today comes with the nonfarm payrolls of which Valeria Bednarik, chief analyst at FXStreet's preview can be read here.

Live coverage of the event can be accessed where with FXStreet

USD/JPY levels

Valeria Bednarik explained, "In the 4 hours chart, the technical indicators maintain strong bearish slopes in oversold territory, currently at fresh lows, while the price is also well below the 100 and 200 SMAs. A weaker-than-expected US employment report can send the pair to retest the low set last January at 115.95, while approaches to the mentioned 118.20 region will probably find selling interest, as the bearish trend will likely prevail."

Meanwhile, other near term levels to monitor are the 1hr 20 sma at 117.19 and the 55 sma at 118.29 (pivot) on the upside to alleviate the short-term downside pressure. A continuation lower opens 116.49 through the lows of 116.73.