AUD/JPY trades with modest gains around 74.40 amid a lack of major catalyst

• AUD/JPY stays mildly positive above 100-day EMA.
• Comments from the Japanese diplomat, downbeat data from Japan please buyers amid a bit nervous tone ahead of the key data.
• Phase-one updates are a few, Japan statistics can offer intermediate moves before the US jobs report that could direct market sentiment.

AUD/JPY takes a short leap to 74.35 amid initial trading session on Friday. The pair recently benefited from the downbeat fundamentals from Japan. Though, the market’s nervous system restricts the pair’s moves.

Japan’s Finance Minister Taro Aso recently accepted the fact that negative interest rates negatively affecting banks' profits, in turn hurting individuals. On the economic front, Japan’s October month Overall Household Spending dropped more than -3% forecast to -5.1%.

Also providing a mild push could be the comments from the United States (US) National Security Adviser Robert C.  O’Brien who said that the US and China are close on the phase-one deal.

On the contrary, markets are on the wait and watch mode ahead of the key November month employment data from the US. The event gets more importance this time as forecasts suggest a strong reading of 180K while early indicators of the data have been quite disappointing. Further, the absence of major data from Australia also contributes to the pairs’ lack of momentum.

With this, the US 10-year treasury yields take rounds to 1.80% while S&P 500 Futures seesaw around 3,120 with small gains.

Ahead of the US data, Japan’s Preliminary reading of October month Leading Economic Index, expected 101.5 versus 101.10 prior, coupled with trade/political headlines could entertain traders.

Technical Analysis

A daily close below 100-day EMA level near 74.15 can drag prices to a three-week-old rising trend line near 73.95. On the upside, monthly top of 74.85 holds the key to pair’s rise towards 200-day EMA level of 75.30.