USD/JPY struggling to sustain its recovery strength above 107.00 handle

After dropping to nearly 1-month low level of 106.37 during early trade, the USD/JPY staged a minor recovery to 107.18 but failed to sustain and is currently trading back below 107.00 handle. 

On Friday, the USD/JPY tumbled after official report showed US job growth decelerating sharply to show an addition of meager 38,000 jobs in May. The fall got aggravated below 107.00 handle, as the US ISM non-manufacturing PMI for May also fell short of consensuses expectations and dropped to print its weakest reading since Feb. 2014.

Disappointing set of numbers on Friday has now eliminated the possibilities of an immediate Fed rate-hike in June. 

Market participants now look forward to comments from the Fed Chair Janet Yellen when she speaks about the economic outlook and monetary policy at the World Affairs Council of Philadelphia's luncheon later during NY session. 

Technical levels to watch

On the immediate downside, bulls will try and defend 106.50-45 support region, which if broken now seems to open room for an immediate drop back towards 105.55-50 support ahead of 105.00 round figure mark support. 

On the flip side, the pair needs to build on to its recovery momentum above 107.00 handle and clear 107.35-40 resistance, which if conquered seems to assist the pair further towards its next major resistance near 108.30 with 108.00 round figure mark acting as intermediate resistance.