USD/JPY Breaks Below 100-Day SMA as Traders Brace for NFP Data

USD/JPY has extended its losses below the critical 100-day simple moving average, signaling growing bearish momentum ahead of the highly anticipated US Non-Farm Payrolls report. The break below this key technical level suggests the dollar is losing ground against the yen as traders position defensively ahead of the employment data release. The yen's strength reflects a broader risk-off sentiment, with safe-haven demand increasing as market participants weigh the likelihood of softer US labor market conditions. A weak NFP print could reinforce expectations for earlier Federal Reserve rate cuts, further pressuring USD/JPY to the downside. On the technical front, the loss of the 100-day SMA now turns this level into immediate resistance, while traders will be watching for the next support zone around the 200-day SMA. A decisive close below the 100-day SMA on a daily basis would confirm the bearish bias. Traders should prepare for heightened volatility around the NFP release, with the pair's direction largely dependent on the employment data outcome.