USD/JPY To Trade With Risks Skewed Higher

USD/JPY to trade with risks skewed higher; trading thin as U.S. market closed for Labor Day holiday. Pair underpinned by JPY-funded carry trades amid positive risk sentiment (VIX fear gauge eases 8.11% to 21.31), strong Wall Street gains Friday (DJIA up 1.24%, Nasdaq up 1.53%) as smaller-than-expected 54,000 drop in U.S. August non-farm payrolls (vs forecast for 110,000 decline) eased fear about U.S. double-dip. USD/JPY also supported by USD demand for import settlements, higher U.S. Treasury yields; speculation over Japanese FX intervention to stem yen''''s advance ahead of Sept. 14 leadership election for ruling DPJ. But USD/JPY gains tempered by Japan exporter sales, weaker USD sentiment (ICE spot dollar index last 82.05 vs Thursday''''s 82.463 settlement) on worse-than-expected fall in U.S. ISM non-manufacturing index to 51.5 in August from 54.3 in July (vs 53.0 forecast). USD/JPY daily chart positive-biased as MACD & stochastics turning bullish. Resistance at 85.22 (Friday''''s high); breach would expose upside to 85.92 (Aug. 30 high), then 86.39 (Aug. 13 high), 86.67 (55-day moving average) and 86.88 (Aug. 2 high). Support at 84.00 (Thursday''''s low), then at 83.67-83.58 band (Wednesday''''s low-Aug. 24 low); breach would expose downside to psychological round-numbered levels from 83.00 down to 80.00, then 79.70 (record low set April 19, 1995).